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Memorandum submitted by Michael T Davies (DFoB 16)
1) I am a dairy farmer, near Droitwich, milking a herd of approximately 150 cows and producing about one million litres. Our family have milked cows here since 1913 retailing the milk in Droitwich until 1954 and then selling the milk wholesale through the MMB and latterly through Dairy Farmers of Britain. I have farmed for 40 years and my daughter has been a partner for 12 years. Five years ago we diversified into making Ice Cream (with the help of a DEFRA grant). This has been a successful venture.
2) We have been members of Dairy Farmers of Britain since its inception. Our loss has been £43831.00 capital investment and £16444.00 milk cheque. This totals our loss at £60275.00.
3) In addition I would like you to refer to page 6 of the Wisemans annual report 2009 (see attached) which clearly shows the reduced price that a Dairy Farmers of Britain member has received in comparison to a direct supplier to a Robert Wiseman Dairy - £261,800.00 less for an average producer of one million litres.
4) We live 4 miles from the Wiseman's Dairy, in Droitwich, and our milk has been delivered into there ever since it opened. However they will not purchase direct so we have to sell to one of the co-operatives (now Milk Link).
5) In December 2005 I expressed my disappointment with the unsatisfactory state of the Milk Industry by visiting my local MP, Peter Luff who took the matter up and passed on my comments to, the then, Minister of Agriculture Margaret Beckett and then had a response from Lord Bach.
6) I still believe there is something fundamentally wrong with the British Dairy Industry that is not being addressed by the NFU and all other interested parties.
7) I would ask the committee to consider: A. Why was the Milk Marketing Board disbanded? B. We operate a
global market yet the co-op Frontera, in C. Why was Milk Marque split into three co-operatives? D. Why have the co-operatives had to shoulder the burden to supplying the commodity market? E. No matter which co-operative I supplied my milk would still have gone into Wisemans yet Dairy Farmers of Britain were in direct competition in the retail marketplace. F. Skulduggery within the marketplace: Johal Dairies versus Freshways; OFT enquiry into collusion between milk processors and retailers (£120 million paid in fines). G. Has our reduced income of £320,000.00 over the past 12 years been a result of unfair trading within a de-regulated marketplace?
Michael T Davies September 2009 |