Upset as Milk Merger Talks are Abandoned

UK - The NFU today expressed bitter disappointment at the news that merger talks between the co-operatives First Milk and Milk Link had been abandoned. It was hoped that the merger would strengthen British dairy in an increasingly competitive global market.

5 February 2008

2 minute read

Europe

Milk Merger Talks Abandoned UK - The NFU today expressed bitter disappointment at the news that merger talks between the co-operatives First Milk and Milk Link had been abandoned. It was hoped that the merger would strengthen British dairy in an increasingly competitive global market.

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"We cannot help but feel that the British dairy industry will be left further behind its EU competitors."

Gwyn Jones, NFU dairy board chairman

It said that the announcement came after several months of negotiations between the two companies and after the merger plan was cleared by the Office of Fair Trading.

Gwyn Jones, NFU dairy board chairman, said: "This news is bitterly disappointing. We know that all dairy farmers, not just members of the two co-ops, will be very surprised to hear the news that the merger has been called off. Quite rightly they will want to know exactly why the decision has been taken not to proceed and it is important that the companies communicate this transparently and accurately.

"Although we can appreciate that bringing together two companies of the size of First Milk and Milk Link was always bound to be tricky, we cannot help but feel that the British dairy industry will be left further behind its EU competitors. We operate in an increasingly international market and to compete effectively businesses must rationalise or they will not survive long-term. A real opportunity to do this has been missed."