Newsletter Archive:
| The Last Word: Jim McLaren |
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Like everyone in the industry, Jim is delighted at the improvement in fortunes at the farmgate and is optimistic for the long-term prospects of the industry. He believes that there is further scope for price increases over the next few months, but is clear that for this to happen, the “market failure” which has been a characteristic of the milk market since deregulation has to be overcome.
Influential Role He sees First Milk having a huge and increasing role to play in this, particularly in light of the remarkable market developments in 2007. “As a membership organisation ourselves, I understand all too well that First Milk is under pressure from the grassroots to perform and deliver. I’ve been known to apply the odd bit of pressure to First Milk myself!” he adds with characteristic honesty. “However, I firmly believe that the balance of power in the milk industry has shifted in the last twelve months and co-ops have an increasingly influential role to play. “I always encourage farmers to press their buyer to get what the market should be delivering - in fact, farmers should do it more often. I genuinely think, though, that First Milk has risen to the challenge this year. Of course, you can’t ever be satisfied in the dairy industry, but my gut feeling is that 2007 has been a turning point for First Milk.” However, Jim recognises that the most significant change this year has been the huge impact of global factors on our milk market. “World population is expanding and dietary changes in countries like China is driving milk consumption upwards. At the same time climate change is hitting hard, with floods in some parts of the world and droughts in others, damaging the world’s production capability.” Against this backdrop he sees it critical that farmers work more closely, both with each other and with the rest of the supply chain,to provide greater security of supply. He sees the proposed merger between First Milk and Milk Link as fitting right into that strategy. Vision “The vision to have fewer, more efficient players in the supply chain is exactly the right policy and will deliver benefits along the chain, particularly at the consumer end. “I hope that when the OFT are reviewing the merger that they take a long-term view of the European and global market in which we’re operating. A strengthening of the co-operative structure can only be good news for consumers, particular in a country that is already facing a shortage of milk, and which cannot escape the global pressures on milk supplies.” The uncertainties of the milk market and concerns of farmers over their supply arrangements were the catalysts for a project by NFUS and the NFU to develop a ‘model contract’. Launched in November, Jim says that the contract has had a good reception on the ground. "We’ve had a major demand from our membership on contracts, so we’ve tried to come up with a platform for fairness in contract negotiations,” Jim explains. “I firmly believe that the model contract has as many benefits for buyers as producers, particularly in light of the increasing pressures on supply. I’m hoping forward-thinking processors will embrace it and see it as the constructive stimulus for debate that it is designed to be.” Red Tape On a wider political front, Jim’s sights are firmly set on lifting the live export ban and striking a balance between environmental regulation and business competitiveness “Regulation will always be a part of farming life. But I can’t accept the growing weight of red tape, which doesn’t have a shred of science behind it. How can we compete in a world market when we ask producers here to jump through unjustified hoops, but at the same time allow imports from foreign countries that don’t demand the same costly requirements?” Crystal Clear Message Continuing on this theme, Jim has a crystal clear message for decision-makers in Brussels, London and Edinburgh. “The EU is going to become more important in feeding the world. If we continue to restrict the ability of EU producers to produce by bringing in unnecessary environmental legislation, we are restricting our ability to feed not only ourselves but other parts of the world.” Reflecting finally on dairy co-operatives, Jim pins his colours firmly to the mast: “The need for a UK farmer owned business to develop and own value added dairy products is as great as it has ever been. This is not only important for co-op members, but for the future of the dairy industry in the UK. I strongly believe that First Milk is getting ever closer to having the personnel and business shape to deliver on its ambitions.” |
As head of the National Farmers Union Scotland, and a dairy farmer himself, Jim McLaren knows what he’s talking about when it comes to the dairy industry. Not only does he understand cows - he milks 300- he also knows about selling milk, being a producer-retailer. Jim’s determination and commitment to the dairy farmer’s cause was one of the reasons he was elected to the top job in NFUS in March. StraightTalk asked agricultural journalist Chris Walkland to pose the questions.