A NEW milk supply contract agreed between Express Milk Partnership and Express Dairies is to be offered to the 1,200 producer members.
Speaking at the Dairy Event, Jonathan Ovens, EMP chairman, confirmed that the new contract included a minimum price guarantee of 0.5ppl above the average of the three major co-operatives - Dairy Farmers of Britain, Milk Link and First Milk.
It is also proposed to increase the length of the "evergreen" contract with Express Dairies from three years to seven, and members' notice periods from three months to 18 months.
The precise details of the new contract and a new capital raising structure are under discussion. It is expected that all EMP members will be offered the new contracts later this year.
Mr Ovens stressed that the 0.5ppl premium was a minimum.
"The Partnership was founded on the principle that members would always receive a higher price than the major broker co-operatives, and at the very outset this figure of 0.5ppl was informally agreed," he said.
"In fact, the Partnership has consistently paid a 1-2ppl premium, and we expect this to continue. The difference now, however, is that a minimum price is written into producers' contracts, and that adds security."
Mr Ovens said there was now a very definite and increasing movement by milk producers to buy into processing and it was felt EMP producers should have that capability.
* The British Dental Health Foundation is supporting National School Milk Week from October 7, because milk is important for the development of healthy teeth.
It has urged teachers and parents to encourage children to replace at least one soft drink a day with a glass of milk
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