Dairy groups defend seasonal payment systems

Posted 16 July, 2004
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UK – Dairies moving their production to spring in order to benefit from cost savings should reconsider, as any perceived benefit would most likely be offset by an increase in industry processing and transport costs.

Research recently undertaken by the Dairy Industry Association (DIAL) and the Federation of Milk Groups concluded that the entire dairy industry is better off with a flatter profile of milk production. The group commissioning the work included representatives from three major co-ops and the four largest processors in the UK.

It added that the overall increase in industry costs by a mass migration to springtime production would reduce the revenue available to pay for milk, so producers would be better off maintaining a flatter production profile.

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