THE Scottish Milk Marketing Board has reacted with ''disappointment''

to the views expressed earlier this week by the dairy processor Alan

Wiseman, who is also president of the Scottish Dairy Trade Federation.

''These comments are no more than blatant mischief-making,'' said

Andrew Howie, chairman of the SMMB, in a statement released yesterday.

''It is especially disappointing that they come at a time when the

board and the dairy trade have been involved in a series of constructive

discussions, aimed at fine-tuning some operational aspects of the

board's proposals for re-organisation.

''In opportunistic fashion, Mr Wiseman is taking advantage of the

recently announced delays in England to attempt to weaken Scottish Milk

and improve his own position.

''He insults the intelligence of Scottish producers, who have spent

the last two years listening to the arguments from all sides, and who

have made up their minds most decisively, and without pressure. To call

for the scrapping of milk contracts against that background aggravates

the insult.

''It is time that Mr Wiseman accepted the fact that the vast majority

of SMMB producers, and a healthy number of Cumbrian producers, recognise

the benefits of sticking together in a co-operative.''

Mr Howie insisted that competition laws in the UK dictated that there

could be no such thing as an ''unregulated monopoly.'' Contrary to Mr

Wiseman's speculation, the facts were that the subject had been debated

extensively by all interested parties -- including the Government and UK

regulatory authorities -- and they were satisfied that the board's

proposals were not anti-competitive.

Nor had there been any change in Scottish Pride's policy, which was to

source milk from properly constituted co-operatives -- in common with

the vast majority of dairy companies in Scotland. Out of around 80

customers for the board's milk, only three had actively attempted to

source direct.

Describing Scottish Milk as ''middlemen with no role'' could not be

further from the truth. If it was true, why did Mr Wiseman attack it so

vigorously? As the SMMB had stated from the beginning, Scottish Milk was

the best way to protect dairy farmers' interests and to secure their

futures.

Mr Howie went on: ''To claim that Scottish Milk will be 'entirely

focused on forcing milk prices to unrealistic levels' shows a total

disregard for the workings of the market. Milk will be priced according

to the laws of supply and demand, and it is the end consumer who will

ultimately dictate the price of milk by what he or she is prepared to

pay for it.

''The SMMB do not see why there should be problems with different

selling arrangements applying north and south of the Border, provided

that all buyers have equal opportunities to bid for the available milk.

''I would be surprised if most of the major Scottish dairies have not

already registered a formal interest with Milk Marque in bidding for

their milk supply. Equally, there have been discussions with potential

new customers for our milk. Like it or not, that is what de-regulation

is all about.''

Claiming there was an element of 'have your cake and eat it' about Mr

Wiseman's comments, the board chairman added: ''As a successful private

marketeer we would expect him to embrace market de-regulation and the

opportunities that presents. Yet, he appears to want to retain those

regulatory elements of the statutory process which suit his interests.''

Mr Howie said it would be a curious free market where every supplier

of raw material was forced to sell its product in exactly the same way.