Rory Christie in his role as Chair of the ADPO, reiterates his stance on collaboration

ADPO Urges Collaboration Between Processors and Producers

As we approach spring flush, the Association of Dairy Producer Organisations (ADPO) is highlighting the need for close collaboration between processors and producers to manage milk volumes.

Open, early dialogue on expected supply, market demand and processing capacity is vital to managing volumes effectively and maintaining stability across the supply chain.

When production exceeds genuine market demand, the result is predictable — price pressure, weaker margins and prolonged instability.

Dairy Producer Organisations (DPOs) can play a key role in supporting collaboration, by bringing producers together, strengthening communication with processors and helping members plan and respond to changing market conditions.

Supporting the development of new DPOs remains an important objective for the ADPO and we would welcome the opportunity to speak to any groups wishing to take steps towards DPO status.

ADPO Chair, Rory Christie, said:

“Nobody seems willing to say the obvious — producing more milk in an already oversupplied market is not helpful. Each business must take responsibility for its future. Hoping others will pull back is not a strategy.

Back in October, the ADPO warned that continued production growth without corresponding market demand or processing capacity could adversely affect market stability. Persistent imbalance will only continue to hurt our sector, it is not sustainable.

It has never been more important for early, transparent dialogue between processors and producers. Collaboration is needed to ensure shared responsibility and solutions.

Again, stating the obvious, under the new FDOM regulations processors have to agree contract changes with individual producers. An efficient and business-like way of doing this is to engage with a professional DPO, which has the mandate to act on behalf of its members.”