Tuesday, 9 June 2009

Dairy Farmers Receivership Highlights Problems

The news from the Dairy Farmers of Great Britain base in Blaydon is grim and a worrying development. The organisation went into recievership last week, with 260 workers jobs at risk. The company puts the reasons for its problems on the decline in world milk prices and also because of the loss of the Co-op contract. DFOGB is a co-operative organisation and much of it was of course the Co-op dairy originally.

It is a great shame that the Co-op has shown no support for fellow co-op movement members as they move to being ultra commercial in their mentality. It is interesting to see that now if, as seems likely, the depot closes our milk will be from further away. Last year apparently the UK was a net importer of Milk as dairy farming was in retreat. It seems a shame that despite all the EU subsidy of farming, milk is not suitably profitable for UK farmers. The supermarkets have to bear a share of the blame as they push wholesale prices further and further. Purchasers need to buy British and be prepared to pay a small premium if they value reducing food miles.

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