A dairy deal between milk producers and processors to commit to a minimum price of 27.5p per litre for 2017 has been agreed upon.
The deal was made between Fresh Milk Company (Lactalis) and the producer organisation Milk Supply Association (MSA).
Welcoming the deal, Rory Christie, chairman of MSA said: “The company has done it to secure its milk supply and give much-needed certainty to its farmers. This is a minimum price and there is a mechanism to raise it.”
NFU Scotland’s milk policy manager George Jamieson said the two parties deserved credit: “It is a deal that makes real efforts to balance production to the demands of the company, and has been negotiated in collaboration with producers.
“Other processors are trying developing new milk contracts which remain voluntary code complaint, but many are not even close. NFUS believes there should be little or no scope for enforced pricing or contract terms which are not negotiated and agreed with producers.
“Looking at the dairy market futures price predictions, it appears to be both fair and reasonable and the ‘basket’ agreement should allow producers some confidence going forward into 2017. There is a baseline determined by good market analysis which could still rise with the market.”
Source: Farminguk.com