First Milk are the third big company to drop milk prices
Two of the biggest names in the milk market have dropped the buying price of milk to producers by two pence per litre and now a third big name, First Milk, have taken a big step into the functional food sector by buying CNP Professional, the top sports nutrition company.
CNP Professional is based in Manchester and the company employs thirty staff. It is responsible for selling a wide range of products to the sports nutrition market. First Milk supplies fifteen percent of the milk produced in the UK. Bill Mustoe, chairman of First Milk, said that the company wanted a diversified business that will give good returns to farmers in the UK. First Milk is a farmer –owned business.
Policy manager for the NFU in Scotland, George Jamieson, welcomed the move saying that the dairy industry in this country needed long-term vision to get it away from relying on core fresh markets at home. He also said that this was a positive move by First Milk, investing in added value products in a growing market that also has export potential.
NFU vice-president, Allan Bowie, said that it was unacceptable for processors to impose drastic cuts in prices on producers without negotiation or agreement. He said that there is a voluntary code of practice instigated by Defra and agreed with Dairy UK, the organisation which represents milk processors. He said that it was constructive and productive but had now reached a critical point.
Mr. Bowie said that milk producers had made concessions and proposals but were sticking to their guns about this. He said that if processors have the right to alter contracts and prices with little or no negotiation, then producers must have the right to leave that contract if they are not happy.
