First Milk members who lost milk during the recent prolonged extreme weather are to receive compensation.
Members will be compensated for the lost milk at the price they received for milk collected during the relevant month. First Milk members in Ayrshire and west Wales were worst affected by the freezing weather conditions.
Chairman Bill Mustoe, commented: "We have taken this approach because it is the right thing to do."
Members who have insurance cover for milk losses are expected to claim on their policy and First Milk will not compensate them.
Members who do not have insurance cover for milk losses will receive their compensation, less a deduction of £50. This deduction gives some recognition of the fact that members who have taken out insurance have already incurred a cost.
First Milk has also advised members that, as of 1 February 2010, the business will no longer pay compensation for milk that is lost due to adverse weather conditions and that they should therefore consider whether to take out insurance to cover such eventualities in the future.
Note to editors
A separate arrangement is in place for organic producers, whose milk is marketed through OMSCo.
For further information, please contact:
T:0141 847 6884
2 February 2010