Alyn Smith MEP has thrown his support behind Scotland's first Dairy Producer Organisation (DPO), hailing it as a vital first step in saving Scotland's dairy industry.
Members of the Milk Supply Association (MSA) - a group of 141 dairy farmers based throughout South West Scotland who supply a creamery in Stranraer owned by Lactalis - are in the process of registering with the Rural Payments Agency to form the first EU DPO in Scotland. Following the 2013 reform of the Common Agricultural Policy, DPOs have been encouraged across Europe and can negotiate collectively for contract terms, including price, and access markets unavailable to individual producers.
Mr Smith said: "The EU Milk Package states that Member States must recognise Producer Organisations for the planning of production and coordination of supply. Formed by producers, a Producer Organisation can optimise production costs, stabilise producer prices, and respond faster to changes in the market.
"Farmers have traditionally eschewed collective action but attitudes have to change in this world of the modern supply chain and the retail juggernauts. I hope to see more DPOs popping up all over Scotland."
Rory Christie, MSA chairman added: "The formation of a Producer Organisation was the logical next step for the MSA. We also hope that the move to forming a DPO, and its recognition by Lactalis, demonstrates a new, alternative way of collaborating in the dairy sector which will add value for both retailers and consumers, and deliver new opportunities for the creamery and back on farm."
Market round-up
The price index of milk products rose 1.9 per cent at the final GDT (Global Dairy Trade) auction of 2015 held on Tuesday
Wallets Marts sold 1813 prime lambs in Castle Douglas on Tuesday to a top of £80 per head and 188.5p per kg to average 151.4p (-4.3p on the week).
Messrs Craig Wilson Ltd sold 14 prime heifers at Ayr yesterday to a top of £1310.80 per head and 237p per kg to average £1254.51 and 222.7p, while a prime bull fetched £1299.20 or 203p.
In the rough ring 118 dairy cows averaged 70.8p and 57 beef cows levelled at 99p. Ten bulls averaged 98.8p.
Dairy cattle were harder to cash and sold to £1380 on two occasions for Holstein Friesian heifers to average £1004 for 18.
The firm went on to sell 565 prime lambs in Newton Stewart yesterday to a top of £77.80 and 173.2p to average 155p (+4.5p).
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