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.
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