With the FDOM regulations (Fair Dealing Obligations (Milk) Regulations) set to come into force for all contracts on 9 July, we have started to see increased activity in the dairy supply chain with a number of processors either releasing compliant contracts or known to be receiving legal advice.
However, a large number of farmers are yet to hear from their purchaser when it comes to discussing the future terms and conditions of their dairy contract. We urge you to get in touch with your buyer if you’re unsure what steps they are taking to comply with the new regulations and to ensure there is time for constructive discussions. The NFU also offers discounted legal checking services for individuals or groups of members – contact NFU CallFirst to be connected to a Legal Panel Firm: 0370 845 8458.
Join a discussion group
We are also encouraging farmer groups to come together to discuss their new contracts and speak with a stronger, united voice when it comes to negotiating and agreeing terms and conditions with your buyer. If you want to join a group, but don’t know anyone else in your milk pool, you can log your interest with NFU Cymru and we can put members in touch with one another should you agree for your details to be shared.
You might remember that, when the FDOM Regulations were introduced, Defra also set up the ASCA (Agricultural Supply Chain Adjudicator) to enforce them. You can find more information about how the ASCA operates and how to make a formal complaint at: GOV.UK | The Agricultural Supply Chain Adjudicator (ASCA): rules and guidance.
From conversations with the farming unions and wider industry, the adjudicator is aware of concerns around individual farmers being named when making a complaint.
NFU Cymru Professional Services
The NFU Cymru and the NFU is lobbying for the functions of the ASCA to be extended, in line with those of the Grocery Code Adjudicator, to allow it to proactively investigate suspected breaches without first receiving a named complaint. However, in the meantime, the ASCA has responded by setting up a dedicated mailbox to enable anyone to raise their concerns with the adjudicator anonymously.
While the adjudicator will not be able to open a formal investigation under the regulations without a formal complaint, the information provided will help inform the activities of the ASCA office and could help to positively influence business behaviour in the future.
To submit a concern or complaint in confidence email: ASCA-in-confidence@defra.gov.uk
