As the First Milk crisis goes on, a Royal Association of Dairy Farmers council member and fellow First Milk supplier is urging other First Milk members to examine their businesses carefully to ensure they survive the crisis.
John Owen says milk producers have to accept the situation as it is: "We First Milk members, together with the rest of producers are currently in a position where we cannot do anything to influence milk price. [...]We can only take First Milk’s word that the co-op is not in danger of collapse; we have to take its statement as read, accept and support the board. First Milk has promised to take our milk and as many litres that we produce. We simply have nowhere else to go."
He recommends suppliers find out their production costs and try to be as efficient as possible when it comes to capital expenditure: "Check out your current true costs of production. [..]Make sure your costs include labour, capital repayments and reinvestment. Budget on the low side of milk price - for an average 20ppl; then maintain a clear cash flow forecast and budget and monitor against performance."
No one is sure how or when the First Milk will be resolved, so keeping an eye on costs will be ever more important.