A meeting between MSPs and representatives from troubled dairy farmers’ co-operative First Milk has been put off until later this week.
The boss and chairman of the Glasgow-headquartered firm have been summoned to reappear before the Scottish Parliament’s rural affairs, climate change and environment (Racce) committee after announcing plans which will see a further reduction in the price paid to farmers for their milk.
The meeting had been scheduled for May 13, but it will now take place on Thursday, May 28.
In the latest letter to First Milk, Racce committee convener Rob Gibson MSP said: “The committee remains extremely concerned by the recent developments at First Milk and the potential impact these may have on those farming in many of our most fragile communities which may threaten the sustainability and recovery of the dairy industry in Scotland.”
A First Milk spokesman said: “As communicated with Racce, jury service prevented our chairman from attending the first meeting. A new date has now been agreed from a range of options we provided.”
The dairy, which produces brands such as the Lake District Dairy Company, Isle of Arran cheddar, Scottish Pride and Mull of Kintyre cheddar, has been at the centre of the current milk market downturn.
In January it was forced to delay payments to farmers after revealing it was suffering from cash-flow problems. It also asked members to increase their capital payments into the co-operative to keep it afloat.
More recently it announced a “turnaround plan” to ensure the future of the business. This includes plans to axe up to 70 jobs, the adoption of a new milk pricing system and a shift to focus on UK dairy contracts and customers.
Its chairman is former Defra farm minister Sir Jim Paice, who served in the role at the peak of the last milk price crash in 2012.
While, more recently a new chief executive – Mike Gallacher – was appointed.
The survival of First Milk is a key part of the Scottish Government’s dairy industry action plan, which was launched in March.
The plan focuses on five key areas – market development, promoting best practice in dairy farming, promoting a transparent and efficient supply chain, supporting First Milk in transforming its operation in Scotland and getting the international rules right.
In January the Press and Journal launched a campaign to help struggling dairy farmers. The campaign, which has been backed by local producers, calls on members of the public to buy more British and Scottish dairy produce.