The Organic Milk Suppliers Co-op is taking on the organic farmer members of the collapsed Dairy Farmers of Britain. The agreement which had been planned for later this year was brought forward and will allow OMSCo to achieve efficiencies on haulage and administration. Organic milk sales are holding up despite media stories of a collapse but rising feed costs are a concern. Meanwhile, OMSCo Chief Executive Hugh Bowles has told farmer members of Organic Arable that he is looking for a fair price deal to enable him to source UK arable products. The gulf between the price expectations of dairy and arable farmers remains significant but co-operation between these two groups, which both have their origins in ORC’s advisory department, is a possibility.
As it has been widely reported in the farming press, readers are probably aware that organic milk suppliers co-op, OMSCo is taking on the organic farmers of the Dairy Farmers of Britain (DFB) co-operative that recently went into receivership. DFB’s collapse brought forward a plan that had been scheduled to happen later this summer.
This move is line with OMSCo’s ongoing strategy of positioning itself to achieve long term market growth which it sees as an essential factor in maintaining and improving price stability for its members.
Sam Taylor, the OMSCo vice-chairman, is reported by the on-line magazine Dairy Reporter.com as saying that, “This agreement, which has been agreed and concluded very quickly, was motivated by a desire to deliver efficiencies on haulage and administration to the enlarged organic pool,”
OMSCo is one of several examples that contradict media stories of the organic sector being in a state of dramatic decline. Whilst acknowledging that there has been an effect, Chief Executive Hugh Bowles, maintains that OMSCo’s milk sales have been holding up well during the recession, as has the price paid to its farmers. Although he points out that much of the price increase achieved in the last couple of years has been taken up with increased feed costs.
Speaking at the recent Organic Arable conference, Hugh pointed to high feed prices, price volatility, concerns over security of supplies, and consequent unexpected variation in ration composition as some of the key challenges facing OMSCo in the future. He also highlighted the potential these and other things have for causing damage to the “organic brand”.
During a thought provoking presentation, which can be accessed below, he asked why someone from a dairy co-operative should be addressing a conference of arable farmers. Before those delegates who are currently feeling that they are getting the worst of the historical corn versus horn dynamic could respond, Hugh answered his own question by revealing that OMSCo cows require annually some 68,000 tonnes of arable product, of which around 60% is imported. He went on to outline the OMSCo Feed Project which aims to address the problems inherent in this situation and urged greater co-operation between OMSCo and Organic Arable.
It would be folly to ignore the fact that there is a real gulf between the price expectations of the two groups of farmers but it is a significant step forward that the issues are being openly raised. Both OMSCo and Organic Arable were founded by a small and overlapping group of farmer clients of ORC’s organic advisory service and it would be particularly pleasing for us to see co-operative organic farmers overcome their sectional interests for their mutual benefit and that of the organic movement overall.
Andrew Trump on behalf of Organic Arable responded positively to Hugh Bowles’ message and we wish the courtship well. Hopefully, there will be positive news to report soon.
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