THE PINE HILL DAIRY (PHD) has responded to the current milk shortage by announcing plans to "suspend the quota" system with farmers.

Yesterday, in a media release, the PHD said that not only would it suspend the quota, but it would pay "its top price" for all milk received. The company also indicated it would temporarily halt production of yogurt and similar items.

The PHD said it would consider importing fresh milk "to the extent of the shortfall" and until such time local supply matched demand.

It stated the current shortage was due to a record low intake of raw milk from farms across the island, in addition to the present high demand for fresh milk.

In an effort to increase the milk supply, the PHD said it would assist farmers in improving yields from existing operations through access to loans at preferential rates for upgrades to parlours and other technical assistance.

Barbados' lone dairy added it would support farmers in their requests for importation of new cattle into the market, and would return to using fresh milk "across all milk products" as soon as the situation permitted.

The company also stated there had not been an increase in the price of fresh pasteurised/chilled milk since July 2001 and PHD had continued to absorb increases in the cost of fuel, ingredients and packaging.

Responding to the turn of events, dairy farmer and president of the
Barbados Agricultural Trading and Investment Co-operative Society, McDonald Stevenson, said the PHD had indeed had two to three increases since 2001.

"It is the farmers who have not had any increase since 2001 or any increase in quota since 1991," he said.

Stevenson stated the PHD, by its own admission, was not the owner of any dairy herd and should not be dictating any price for farmers.

"Why should the price of locally produced milk not be out of the control of the PHD similar to imported milk?" he asked.

The major dairy farmer dismissed the offer made by the PHD of assisting farmers with accessing loans, noting dairy farmers needed an increase for their milk and not loans.

He added: "Now that the PHD has admitted it will be using powder milk, a low cost substitute, this milk will be sold at fresh milk price. In light of this fact, farmers should be paid more for their fresh milk by the PHD, without any increase to the consumer."