UK: First Milk to pay compensation for lost milk

By: just-food.com | 3 February 2010

UK dairy co-op First Milk said it will pay compensation to its members for lost milk during the recent prolonged extreme weather.

Recently appointed chairman Bill Mustoe said yesterday (2 February) that 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.

“We have taken this approach because it is the right thing to do,” Mustoe said.

However, the compensation will only apply to those who did not have insurance cover for such an eventuality, the firm said.

“Members who do not have insurance cover for milk losses will receive their compensation, less a deduction of GBP50 (US$79.81). This deduction gives some recognition of the fact that members who have taken out insurance have already incurred a cost,” the company said.

First Milk has also advised members that, as of 1 February, the business would 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.