Somerset Co-op Offers To Take On All Dairy Crest's Organic Suppliers
Following Dairy Crest's recently announced 4p/litre cut in the price it pays it's farm suppliers for organic milk, Somerset-based OMSCo, (Organic Milk Suppliers' Co-operative) has offered to take over all of Dairy Crest's 78 organic suppliers, who between them pump 90 million litres a year into the market, according to reports.
The co-op's 400 farmer members produce 300 million litres of milk a year and it is the main supplier to Yeo Valley, the country's largest organic yogurt maker.
The deal, put to the Dairy Crest farmers last week, is an all or nothing one – all the suppliers have to agree or it will not go ahead. But there were indications at the meeting that three quarters of the farmers were ready to make the move, with the rest wanting to see the small print first.
The proposed deal would give OMSCo control of about 90 per cent of the domestic organic milk market.
Dairy Crest, Britain's largest milk processor, blamed it's cut on falling demand for organic milk because of the squeeze on consumer spending.
The company is reputedly 20 million litres over-supplied – about £4.2m in a year – and has nowhere to sell it.
But embittered organic farmers say the processor has been victim of its own mismanagement – Dairy Crest has continued to recruit organic suppliers without, apparently, having a guaranteed outlet for what they would be producing.
The co-op's 400 farmer members produce 300 million litres of milk a year and it is the main supplier to Yeo Valley, the country's largest organic yogurt maker.
The deal, put to the Dairy Crest farmers last week, is an all or nothing one – all the suppliers have to agree or it will not go ahead. But there were indications at the meeting that three quarters of the farmers were ready to make the move, with the rest wanting to see the small print first.
The proposed deal would give OMSCo control of about 90 per cent of the domestic organic milk market.
Dairy Crest, Britain's largest milk processor, blamed it's cut on falling demand for organic milk because of the squeeze on consumer spending.
The company is reputedly 20 million litres over-supplied – about £4.2m in a year – and has nowhere to sell it.
But embittered organic farmers say the processor has been victim of its own mismanagement – Dairy Crest has continued to recruit organic suppliers without, apparently, having a guaranteed outlet for what they would be producing.
