Farmers fear a monthly fee currently being debated by German dairy giant Muller to operate a new farmer board is a cut in their prices 'through the back door'.
NFU Scotland milk committee chairman Graeme Kilpatrick was speaking of Muller proposals to introduce new contracts and charging a £10 monthly fee.
He told the Scottish Farmer: "Farmers, especially those in Ayrshire and Lanarkshire, are deeply concerned that there are more penalties than carrots regarding the proposed new board structure, with some fearing it is a price cut via the backdoor, with penalties for wrong production predictions rather than incentivising accuracy.
"Given there is a rising market, and supply and demand is in farmers’ favour, there are question marks over the advantage of having a paid for board that can’t negotiate on price. At the Kilmarnock meeting the current board couldn’t tell producers why they should sign new contracts.
"Some farmers are afraid to speak out in the forlorn hope of being awarded an aligned contract. It’s going to be some time before anything is settled in black and white."
Subscription
Muller communication director Graeme Jack said their supply base has increased and the proposals seek to represent the increased membership.
"Representatives will be nominated by their fellow farmers to serve as a farmer forum member on a one per 100 non-aligned producer basis with further representatives of our aligned group farmers. The forum will be responsible for electing the Muller Milk Group Board who meet the company on a monthly basis.
"The subscription is estimated to be in the region of £10 per farmer per month but this would be determined by farmer forum members when this representative structure is put in place. It is important to stress that these funds would be subjected to appropriate accounting, goverance and audit procedures, with this information communicated to the MMG on an annual basis."
