The annual general meeting of Welsh Milk Limited was held at The Emlyn Arms, Newcastle Emlyn, recently.

The chairman, Sir Eric Howells CBE, of Llanddewi Velfrey, in his opening remarks to a large number of producers, said that their company in its second year had a multi-million pound turnover, achieving a satisfactory margin and paid its members the highest milk price in South Wales. However, he was concerned that in line with all other buyers they were paying members a price for their milk that was below the cost of production and this was in spite of the processors and supermarkets making excessive profits.

He believed that the only way forward for the farmer groups was to produce their own processing operations and, if necessary, sell milk direct to the housewife.

He thanked the members for their confidence in their directors and foresight earlier in the year to agree to investigate going into processing. These plans were now at an advanced stage and it was hoped would be fully operative in the next few months, adding greater security to the business and to the price paid to the members.

Trevor Routley, the administration director, gave a report on the day to day running of the business. Very few problems were encountered during the year and all farmers were paid on time every month.

Des Jones, the transport director, spoke of the organisation of the lorries and the excellent service given by the drivers. The cost of running the lorries and maintenance was well within the budget which meant that any surplus made on the transport was being added to the producer price.

Clive Bott, the sales director, spoke of the problems experienced during the year, especially in the spring when several companies had difficulty selling their milk. Llaeth Cymreig, on the other hand, were able to move all their milk at a fair price, considering market forces then prevailing.

Paying tribute to the members for the very high quality of milk that they had produced, he emphasised that in a competitive market, quality was paramount and that future success depended on maintaining that quality and developing their market.

In presenting the financial report for the year ending March 31, 2002, the chairman said that in spite of purchasing three lorries and office equipment in the past two years, the company was operating without an overdraft and had shown a satisfactory profit.

He thanked his fellow directors for their dedication and skill in managing the company during this time. This was also true of the dedication and loyalty of the office staff and drivers.

Seven members offered themselves for election onto the board for five places. The four existing directors were re-elected: Eric Howells, Upper Fron, Llanddewi Velfrey, Narberth, Des Jones, Pantgwyn, Synod Inn, Llandysul, Clive Bott, Brynbedw, Bancyfelin, Trevor Routley, Fern Fach, Blaenycoed, and Huw Jones, Penlanymor, Llanarthas, the fifth member.