The Press and Journal (Aberdeen and Aberdeenshire)
North-east dairy farmers hit with ‘hammer blow’
● Muller gives suppliers 12 months’ notice to find new milk buyer
More than a dozen northeast dairy farms were dealt a “hammer blow” yesterday when the main milk processor in the region gave them 12 months’ notice to find a new milk buyer.
Muller has delivered termination notices to 14 of its 26 Aberdeenshire farmer suppliers following a review of its Scottish dairy operations.
“The current situation is unviable and we must act”
It said an “unprecedented 25% surge” in Scottish farm milk production meant it was being forced to haul 180 million litres of excess milk to England for processing every year.
Rob Hutchison, the firm’s milk supply director, said: “We fully appreciate that these measures will be extremely unwelcome and destabilising for our farmer suppliers, particularly in the north-east of Scotland, but the current situation is unviable and we must act.
“Our farm services team will now work closely with affected dairy farmers and we will do everything in our power to help them adjust to the changes which we must now make.”
Farm leaders and politicians last night described the news as devastating but one affected farmer was upbeat about the prospects for dairy farming in the region.
Roy Mitchell, who milks 350 cows at Drimmies Farm, near Inverurie, admitted the decision was a surprise but said he was confident he would be able to find a new buyer for his milk. He said: “We have 12 months’ notice but obviously we will go to try to find someone else before then. There are other milk buyers in Scotland. I’m quite confident.”
Shadow rural economy secretary Peter Chapman described the news as a “hammer blow” to northeast dairy farmers.
He said: “There is no guarantee that these 14 farms will find another processor to take their milk. That would be a catastrophic blow and would mean business would have to cease.
“The SNP government needs to step in with a package to turn this catastrophe around. If nothing is done, farms will have less than a year to scramble for alternatives to their main business.”
Aberdeen South and North Kincardine MSP Maureen Watt, meanwhile, said Muller’s decision appeared to be motivated by profit with little regard given to Scottish dairy farmers.
She said: “I will continue to monitor the situation as it develops, including seeking updates from the Scottish Government on any assistance they can give to the dairy farmers during this difficult and worrying time.”
Rural Economy Secretary Fergus Ewing said: “It is clear some dairy farmers will be severely affected and we will work closely with them to try to mitigate the impact as much as possible. That will include continuing to liaise with Muller to encourage it to make a different choice.”
Farmers who have been served notice are believed to be those located to the north and west of Aberdeen, an area described by Muller as one which presents “heightened or complex logistical challenges”.
Earlier this year Muller confirmed plans to close its Aberdeen distribution depot. This follows the closure of its Aberdeen milk processing plant in 2016, a move which resulted in many farmers having to pay 1.75p per litre of milk produced to get it transported to the Central Belt for processing.