UNITED Milk is still keen to do business with other milk supply co-operatives

In a letter to all the company's suppliers, chairman Richard Ashworth reaffirmed the 'Use it or lose it' message he gave to the recent Plunkett Conference.

Mr Ashworth, said: "We are a customer for the UK milk co-ops. We want to enter into a partnership with them.

"As their customer, we are offering flexible contracts under which we will pay market-related prices year round including the spring flush."

As their partner, United Milk are offering to put a floor in the market above which they can build premiums with other buyers.

In return it is asking for a commitment to supply, now or at some stage during the milk year, up to six per cent of their milk supply.

United Milk said that the offer could not stay on the table indefinitely.

Explaining the 'use it or lose it' message, Mr Ashworth said that although United Milk would still be around in the spring, he couldn't guarantee advantageous deals would be made with other co-ops if they did not support the company during the rest of the marketing year.

Mr Ashworth said: "It is unacceptable that we are stuck at the bottom of the EU milk price league.

"We have the best structure and in many cases the best farmers. We have got to work together to get the best price."

Frustrated at being unable to secure long-term commitment from the cooperatives, United Milk is anxious to find a solution.