Dairy sector to focus on supply chains and contracts as it resets, restarts and recovers

As Scotland slowly eases its lockdown restrictions, Scotland’s dairy farmers are looking to build stronger supply chains and discuss milk contracts as they reset, recover and restart from the impacts of Covid-19.

The Union has recognised that resetting and restarting as we emerge from the crisis will provide significant opportunities for Scottish farmers, crofters and growers. All NFU Scotland’s commodity committees and working groups – combinable crops, livestock, milk, pigs, poultry and specialist crops – have identified key steps and actions needed.

For those producing milk, the priorities are the following:

Engage on all discussions relevant to government support options for dairy farmers.

Work with processors to ensure any adverse impacts on producers are minimised and returns to farm businesses are maximised.

Engage with processors to assess if their business requirements have changed during the recovery stage to ensure that producers can adapt.

Deliver the forthcoming milk contract consultation and engage with the membership.

Deliver the Scottish Dairy Growth Board Dairy Future Report, including increasing export markets for Scottish dairy produce and inward investment for increased dairy processing capacity.

Milk committee chairman, Gary Mitchell, who milks cows near Stranraer, Wigtownshire said: ‘What an extraordinary spring. When the Milk committee met in March, we were joined by Cabinet Secretary for Rural Economy Fergus Ewing and had a very useful discussion on milk contracts, future investment in dairy processing in Scotland and all the environmental challenges ahead for dairy farmers.

‘A few days later, there was a dramatic change, we hit lockdown and a real challenge came to the sector.

‘It took a few weeks to get a grip on the whole dairy market situation during the initial response phase to Covid-19. Now, we are in reset and restart and heading for recovery, and we need to focus on how we can improve our supply chain.

‘I am pleased to say that the UK Government and devolved nations will be launching a consultation on contracts in next few weeks. I would encourage all farmers to take part it. It is all about the future. It is not just about a farmer’s milk contract, but about the whole chain from farmer to processor to retailer and other outlets and making that chain better.’