Nestle to further cut dairy farmers' quota

Claude Wilson, Freelance Writer

WESTERN BUREAU:
UNIMAGINABLE IN a small country is how one prominent dairy farmer described Nestles -JMP Jamaica limited announcement this week of a further cut in the dairy farmers' quota to the Bybrook condensery.

On Wednesday Nestles -JMP notified dairy farmers of a further 10 per cent cut in volume of milk purchased by the company reducing their purchase from 16 million litres per annum to 5.4 million in 18 months.

A situation like this is unimaginable in a small country which already imports 92.5 per cent of its dairy products, says a frustrated prominent dairy farmer.

"Local producers of primary products like milk need to be given a fair opportunity to enjoy their own local market", he said in an e-mailed letter to The Gleaner. The farmer is calling on Nestle-JMP to have a heart and use less imported milk powder in their SCM and flavoured milk drinks, e.g. Suppligen, until the implementation of the new School Feeding Programme initiative. In January this year Nestle-JMP issued a letter advising dairy farmers of a reduction in the purchase of whole milk and the price paid for the product, and with an undertaking to assist farmers to find market for the surplus milk. Nestle-JMP cited unfavourable changes in the total milk business that has led to the condensery instituting a number of cost reduction initiatives, including the cutback in fresh milk purchase.

According to general manager of Nestle-JMP James Rawle, the cutbacks should not have come as a surprise to suppliers as these discussions were contemplated and discussed with the Dairy Farmers' body.

"It has been 2 years since we have been having dialogue on this issue, local whole milk is very expensive, possibly the most expensive in the world, and is a significant cost element in our operations, said James Rawle. The Bog Walk condensery purchased some 10 million litres annually of the 25 million litres of whole milk produced by the Jamaica Dairy Farmers which was reduced in January 2002 by 4.0 million litres.

This week's cut will bring the volume of milk purchased by the Bybrook plant to 5.4 million litres per annum.

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