‘We need to take a long hard look’

The recent recommendation made by the Grocery Chain Adjudicator (GCA) to introduce a regulated compulsory contract specific to the dairy sector represents a “seminal and definitive” opportunity.

Claiming that such an opportunity should not be lost in “ill-informed rhetoric and lack of effort” NFU Scotland vice-president Gary Mitchell yesterday urged all sides of the milk industry to take a long hard look at the current Defra consultation on the issue.

“This must be an openminded, well-considered and informed discussion, as it recognises the dairy sector needs to be reformed to underpin a sustainable, efficient and productive dairy supply chain,” Mitchellsaid.

He said the proposal could be the most significant initiative in the UK dairy sector for a generation and asked farmers and processors to engage with the consultation.

Saying that the current voluntary code on contracts had under-achieved, he emphasised that the NFUS and other unions had no desire to support an initiative without clear evidence that it could deliver for farmers and processors.

Recently returned from a trip to Spain where such an approach has been taken, he said mandatory contracts had increased stability and clarity in the sector – but not necessarily farm gate price or retail power.

Stating that the system was still a work in progress he said: “The Spanish arrangements are not a panacea. There is still friction between the parties, but the Spanish government is very engaged.”