South of England dairy farmer co-op Milk Link has announced plans to restructure its operations along the lines of a European style producer cooperative. The change in structure will allow Milk Link to raise the capital it needs to finance a move into processing designed to underpin its members' milk prices, and improve their share of added value profit created when milk is turned into products. Farmers will also have a far higher degree of representation as voting rights in the new structure ensure a member's say in the business reflects the volume of milk a member consigns to it. The action is being taken against the backdrop of FMD leaving very little opportunity to increase the price of milk above its present level. Milk Link chairman Jeremy Pope said: "The current structure of the dairy industry often works against the interests of the dairy farmers. There are inefficiences in the supply chain, the costs of which tend to fall principally on the milk producers. "At present we have little control over our share of the added value created when milk is turned into products and we want to be in a position to be able to redirect more of that profit to dairy farmers. In the UK we are the exception rather than the rule by having co-operatives that are predominantly brokers of milk." Farmers will be asked to make a small contribution from their monthly milk price to build up reserves. These contributions are to be placed in members' own capital accounts and repaid after their retirement from the co-operative. Members will also be asked to participate in a guarantee scheme. Milk Link members will vote on the proposals at a special general meeting later in the summer. {{M/E CANNED GOODS }}

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