08/09/06
Further consolidation within the dairy sector is being called
for by the All Party Parliamentary Group for Dairy Farmers, with
discussions involving each of the three co-operatives, First Milk,
Milk Link and Dairy Farmers of Britain being scheduled with the
group’s chair, Daniel Kawczynski. The Royal Association of
British Dairy Farmers, the APPG’s secretariat is organising
the meetings within the next few weeks, after Parliament reconvenes.
Mr Kawczynski’s move follows a meeting with Farmers For
Action at which David Handley reinforced the need for merger between
the three co-ops in order to improve the sector’s competitiveness,
efficiency and marketing clout.
“Co-op merger has been part of our campaign over the last six
years,” said Mr Handley. “During that period we have witnessed
dramatic rationalisation among producers, however we have not seen
the same trend within the processing sector. We need to take costs
out of production, and here we have in effect three major PLCs competing
against each other. However, I have been told on three occasions by
the Office of Fair Trading that they have no objection to the three
co-ops merging into two co-ops.”
Very few mergers in the dairy sector raise competition issues, according
to OFT’s director of mergers, Simon Pritchard. In a recent meeting
of the APPG in the House of Commons he commented: “We only intervene
in the select minorities.”
Daniel Kawczynski commented: “I am very flattered that so much
interest is being demonstrated in the APPG which reflects the need
for establishing such a group. I am very grateful to RABDF for facilitating
industry meetings to bring about change, which is so desperately needed.”
RABDF chairman, Tim Brigstocke added: “We find it encouraging
that industry influencers are meeting with the APPG. It is a measure
of the current state of the industry, and it reinforces just how important
Parliament should be in creating a sustainable industry.”
The
24th Northern Expo Holstein Show
Farm diversification opportunities at the Dairy Event 2006
Rising
cattle entries at the Dairy Event
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