NFU: Long awaited dairy contract legislation to go before Parliament
Source: The DairyNews
After over a decade of campaigning from the NFU and other UK farming unions calling out unfair practices in the dairy supply chain, new legislation on dairy contracts is set to be laid out before Parliament.
This follows an initial promise to dairy farmers' which was made at the Great Yorkshire Show back in July 2023, following previous commitments at the No. 10 Farm to Fork Summit.
It is hoped the new regulations will establish transparency and accountability across the dairy supply chain by stopping contract changes being imposed without agreement.
There will also be a system in place to enable farmers to verify the calculation of variable prices.
The regulations also include an enforcement regime, which allow the Secretary of State to impose substantial financial penalties to entities who make any breaches. The NFU has been long campaigning for transparent, fair and functioning supply chains. It’s five key points for contract reform focused around:
Relationships and farmer representation;
Exclusivity and volume management;
Elimination of unilateral changes and one-sided contract terms, and;
Consequences of breach
Take a look back on how the NFU has worked on creating fairer, transparent and more resilient supply chains: Dairy contracts regulations – how we’re keeping dairy farmers at the forefront
A significant step in more than a decade of campaigning
Outgoing NFU Dairy Board chair Michael Oakes said that the news of the SI (Statutory Instrument) being laid out before Parliament “marks a significant step” in a long road of campaigning to improve fairness across the supply chain.
“For a long time, unfair milk contracts have held back many UK dairy businesses, and these changes will help give dairy farmers much needed business security and confidence,” he said.
While progress has taken far longer than any of us hoped and expected, I am confident that we are finally on the right path to building a stronger, more resilient future for the UK dairy sector.
He also said that producer organisations will play an “important role” in helping farmers to negotiate contracts.
“We will continue to support the development of representative structures like these to help improve trust and collaboration across the supply chain,” he said.
Michael also spoke of the importance of working with the Government and the wider dairy industry, “not only benefit farm businesses and the dairy supply chain, but the millions of people who value access to quality, sustainable, nutritious British milk and other dairy products on a daily basis.”
It is hoped the new regulations will establish transparency and accountability across the dairy supply chain by stopping contract changes being imposed without agreement.
There will also be a system in place to enable farmers to verify the calculation of variable prices.
The regulations also include an enforcement regime, which allow the Secretary of State to impose substantial financial penalties to entities who make any breaches. The NFU has been long campaigning for transparent, fair and functioning supply chains. It’s five key points for contract reform focused around:
Relationships and farmer representation;
Exclusivity and volume management;
Elimination of unilateral changes and one-sided contract terms, and;
Consequences of breach
Take a look back on how the NFU has worked on creating fairer, transparent and more resilient supply chains: Dairy contracts regulations – how we’re keeping dairy farmers at the forefront
A significant step in more than a decade of campaigning
Outgoing NFU Dairy Board chair Michael Oakes said that the news of the SI (Statutory Instrument) being laid out before Parliament “marks a significant step” in a long road of campaigning to improve fairness across the supply chain.
“For a long time, unfair milk contracts have held back many UK dairy businesses, and these changes will help give dairy farmers much needed business security and confidence,” he said.
While progress has taken far longer than any of us hoped and expected, I am confident that we are finally on the right path to building a stronger, more resilient future for the UK dairy sector.
He also said that producer organisations will play an “important role” in helping farmers to negotiate contracts.
“We will continue to support the development of representative structures like these to help improve trust and collaboration across the supply chain,” he said.
Michael also spoke of the importance of working with the Government and the wider dairy industry, “not only benefit farm businesses and the dairy supply chain, but the millions of people who value access to quality, sustainable, nutritious British milk and other dairy products on a daily basis.”
