FIRST Milk's ground-breaking dairy supply partnership with Nestl has exceeded both companies' expectations, with a positive response to an offer of full membership.
First Milk, a dairy co-operative based in Hallow, Worcester, representing 4,000 farmers nationally, entered into an agreement with global food producer Nestl in November 2002 to supply all of its raw milk requirements in the UK.
The partnership became a reality at the beginning of April, and First Milk has received a "very positive response" to its offer of full membership for Nestl producers.
More than 280 producers had chosen to join First Milk by the start of the 2003/4 financial year, a full year ahead of the target date of April 1, 2004. This represents 65 per cent of the total number of Nestl contracts that could have been assigned.
"We welcome all new producers to the business and we are particularly pleased that such a large number have made an early commitment," said John Duncan, First Milk's chief executive.
"The partnership with Nestl is the first of its kind and a model for developing the relationship between British dairy farmers and processors, who are increasingly viewing the challenges of dairy markets from a common perspective."
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