Co-op to establish dedicated milk supply

A move by the Co-operative Group to establish its own dedicated milk supply is a significant and encouraging development, the NFU said today.

It follows talks earlier in the year when NFU President Peter Kendall and NFU Vice President Gwyn Jones met Co-operative Group chief executive Peter Marks about the retailer establishing a dedicated relationship with its dairy suppliers and to discuss issues raised in the NFU’s Survival Plan for British Dairying.

NFU dairy board chairman Mansel Raymond said: "I am extremely pleased that the Co-operative is honouring the commitment it made to the NFU at the start of the year to establish a dedicated relationship with its liquid milk suppliers. Given the pressures the supply chain is facing currently the news that another major retail customer of British milk is taking greater responsibility for its dairy farmers is very positive.

"This announcement will lead to another 350 dairy farmers being part of a dedicated liquid milk supply chain, and take the total volume of milk linked to a dedicated chain to over 3.5 billion litres in Great Britain.

"I look forward to seeing the detail of this arrangement emerge in due course, but the commitment to greater partnership with farmers and processors and greater transparency in those relationships is a huge step forward. The NFU will be pleased to offer its ongoing support and advice to the Co-op in the development of its plans."