THE national producer group Express Milk Partnership has voted in favour of a new milk supply contract with Express Dairies.

At an extraordinary general meeting at the National Agricultural Centre, Stoneleigh, EMP members recorded overwhelming support for a proposal offering a seven-year "evergreen" commitment from Express and an unprecedented minimum price guarantee.

The new contract, which takes effect from April 1, 2003, also creates the potential for EMP to instigate a capital-raising structure should its producer board and district chairmen agree it is in members' best interests.

About 70pc of EMP members voted.

Jonathan Ovens, EMP chairman, revealed that more than 200 members (20pc of the membership) had already signed new contracts in anticipation of a positive outcome at the EGM.

That commitment, he said, indicated an overwhelming level of confidence in, and support for, a groundbreaking initiative.

"All parties, including the EMP board, Express Dairies and, most importantly, the vast majority of EMP members, have shown great courage and commitment in embracing the new deal," said Mr Ovens.

"The result for EMP members will be greater security, a better basis for business planning, and ultimately prosperity resulting from a fair and sustainable return from the liquid milk market."

Neil Davidson, Express Dairies' chief executive, welcomed EMP's decision to adopt the new contract. He was now looking forward to an even stronger partnership with EMP dairy farmers.