MEMBERS of one of the country's biggest dairy co-operatives have voted for reforms that, they say, will lead to fundamental change in the industry.

First Milk, based at Hallow, near Worcester, represents about 200 dairy farmers in Worcestershire and Herefordshire, accounting for up to 150 million litres of milk a year.

It also represents 4,000 farmers nationally.

At First Milk's annual meeting last week, members voted in favour of reforms that put in place a structure of capital accounts to support major investments in dairy processing.

Following the annual meeting, at the National Agricultural Centre, Stoneleigh, Warwickshire, chairman John Duncan said the reform paved the way for First Milk to lead fundamental change in the industry.

"There is an urgent need for dairy farmers to become more involved in processing and marketing their milk," said Mr Duncan.

"And it is clear from this vote that our members support that view."

He said "disastrously low" milk prices underlined the need for First Milk's investment strategy.

"Along with other organisations representing farmers, we have campaigned for price increases this autumn to support farmers through the winter.

"As well as increasing the price they pay for liquid milk, it now appears that retailers have addressed other dairy products, in particular cheese.

"This is welcome, though we still have work to do to ensure that the extra money is passed to farmers in their milk cheques for October supplies."

He said the industry needed to address its structure and become price-setters rather than price-takers.

"Dairy farmers do not produce a commodity. We are a vital part of the dairy supply chain, which supplies top-quality, fresh products to British consumers 365 days a year.

"Our farmers produce milk to the highest standards of animal welfare and quality assurance.

"Yet in recent years, our price has been driven down by international commodity dairy markets, and imported milk products with no such guarantees or the costs associated with them."

He said in order to change things, producers needed to become more involved in the dairy supply chain.

"At First Milk, we have made great strides in the past year, by investing in dairy product manufacture in joint ventures with established dairy companies.

"We need to further develop this strategy by making major new investments and members' support at the AGM gives us the mandate we require to seek out greater opportunities."