Sunday, June 16, 2024

Dairy farmers to get new rules over contracts, says Government

New contract regulations for the UK’s dairy farmers will come into force in the autumn, the Government has formally announced, promising to empower dairy farmers’ negotiating position, helping to ensure fairer prices, transparency and accountability across the supply chain.

NFU Dairy Board chair Michael Oakes said: “These new regulations mark a significant step forward in the government’s efforts to increase fairness and transparency in the dairy supply chain.”

New regulations promise to empower dairy farmers’ negotiating position, helping to ensure fairer prices, transparency and accountability across the supply chain

The government has announced that the regulations will come into force later this year and will enable farmers to challenge prices, prevent changes being made to contracts without farmers’ agreement, and make it easier for farmers to raise concerns.

The development of the regulations has been supported by detailed discussion with key industry players including the NFU and Dairy UK, with Mr Oakes describing the announcement as a “significant step forward” in increasing fairness and transparency across the dairy supply chain.

He said: “For a long time, unfair milk contracts have held British dairy businesses back, and these changes will give dairy farmers much needed business security and confidence, as well as helping to share risk along the dairy supply chain.”

Farming Minister Mark Spencer said: “Farmers must be paid a fair price for their produce and these regulations will provide price certainty and stability for farmers by establishing written milk purchase agreements with clear and unambiguous terms.

“This represents a key milestone in our commitment to promote fairness and transparency across food supply chains to support farmers and build a stronger future for the industry, and will be followed by reviews into the egg and horticulture sector supply chains this Autumn.”

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