Farm unions push for compulsory contracts for dairy

UK FARM unions were this week pushing hard for the introduction of compulsory contracts setting out fair terms between milk producers and processors – but some within the industry responded by warning that forcing the issue could lead to “disaster” for dairy farmers.

NFUS milk committee chairman John Smith said: “Scotland and the rest of the UK is a good place for dairying for all involved, but the current situation with regard to pricing is far from fair. We have to redress the balance of influence and power of the milk buyers and supermarkets, and we believe the way to do this is having compulsory milk contracts which we would like to see in place by the end of this year. It’s all about farmers knowing what their price will be, while at the same time buyers need to know what volumes they can expect.”

All four UK farming unions have welcomed the fact that the government had listened to their call, in the Grocery Code

Adjudicator consultation, for a fairer supply chain.

“That said, the blunt wording of the current EU regulation on milk contracts isn’t suitable for our diverse UK dairy industry – this is one of the reasons the UK opted for the voluntary code of conduct for contracts when the EU regulation first came into force,” said Mr Smith.

But dairy industry analyst Ian Potter said: “Compulsory contracts forced through at short notice with minimal consultation will in my opinion be a disaster for UK dairy farmers.”

For in-depth news on Scottish agriculture, see this Friday’s issue of The Scottish Farmer.