PHD and farmers agree to cuts in milk cuts

Bridgetown.

The Pine Hill Dairy (PHD) and dairy farmers have agreed to a cut in the milk quota to ensure that the price of milk do not increase.

After a lenghty meeting between the farmers and the management of the PHD yesterday aimed at maintaining the current price of white milk to consumers, PHD agreed to continue absorbing increases in the cost of processing and the dairy farmers have agreed to temporarily reduced the farm-gate price on milk until April 30,2013.

The PHD has agreed not to impose any further quota reductions to farmers until December 31, 2013 and to buy the excess milk produced by the farmers up to a limit of five percent of the revised quota.

Both sides have agreed to continue to aggressively pursue acceptance of a suitable industry assistance plan to be readied for implementation as early as possible after April 30.

According to Richard Cozier, the CEO of the PHD, the temporary agreement comes as the dairy continues to loose money on every single carton of white milk it sells, a position which is unsustainable.

"This is a bitter pill for all involved.The options at our disposal in regard to milk are becoming fewer and fewer. Pine Hill has absorbed all of the increases it can over the last eight months. It is well known, we have made representation to Government and we will continue to work with farmers so as to ensure the survial of the industry", says Cozier.

"It is absolutely critical that a holistic plan is agreed upon urgently. This agreement provides us with a window within which to finalize those plans and seek Government approval therefore. The plans will be designed to better position the industry to grow whilst ensuring that prices are reflective of the economic conditions that prevail", he added