STRANRAER-BASED cheesemaker Lactalis is set to see its milk intake nosedive by 53 million litres as its producers queue up to leave.
The loss is down to over 20 producers tendering their resignation, and a similar number, supplying a further 20 million litres, considering their position.
The situation was confirmed to The Scottish Farmer as it went to press on Wednesday by the chairman of the company's Milk Suppliers Association, Rory Christie.
Mr Christie said: “I am also considering resigning. Lactalis say they are upping their price to 25p per litre from November 1, but unless they up that to 30p then I too am out.
“Any producer who says to their buyer they need 25p are selling themselves short," he said. "The majority of the association members who have put in their notice are going to Yew Tree Dairy at Skelsmersdale which does what it says on the tin.
“The Yew Tree price is currently at 30p and set go higher from November. Given the current range of price increases in recent days from other milk buyers in Scotland, producers have to look at the options open to them.
“The milk price crisis has gone on too long, money is running out and bills are mounting up. If realistic prices are not made by milk buyers they will wake-up one day facing a shortage of supplies and nobody to blame but themselves.”
John Watson, of Highmark, Stranraer said: “I’m leaving Lactalis and likely joining Yew Tree. Given the prices being offered by Lactalis there is little wonder producers have lost faith in the company.
“Compared with the likes of Yew Tree, it is a one-way trip with Lactalis. All your eggs are in the one basket – a cheese basket. Yew Tree are progressive, involved in skim milk powder, a big liquid involvement, brokering and said to be looking at producing butter.
"Lactalis coming out now and saying they will pay 25p from November has come too late and falls way short of what producers need in order to keep their heads above water. I doubt those who have tendered their resignation will be tempted to retract for 25p.”
James McNeil, of Cairnpat, Stranraer, said: “I am leaving and likely moving to Yew Tree. We can’t go on with what Lactalis are offering.”
John Cumming, also from Stranraer, said: “All the milk buyers in Scotland have pushed producers to the limit. Lactalis say they will pay 25p from November. I don’t think that will make people change their mind and stay. It’s not enough if they don’t go to 30p at least, then I too am out.
“The code of conduct that was introduced is a total waste of time. It should have been made compulsory. There are no rules in the milk game," said Mr Cumming. “And there’s no use in trying to get Lactalis to comment. You have a better chance of trying to phone Elvis.”
The Scottish Farmer did try to contact Mark Friel, head of milk procurement for Lactalis, but he didn’t return the call.