NFU Cymru, alongside the other UK Farming Unions (NFU, NFU Scotland and Ulster Farmers Union) has long been lobbying to improve fairness and transparency in the dairy supply chain.
For most dairy farms, the milk contract is the single most important piece of paper and governs the relationship farmers have with their milk buyer.
Fairness
Fairness in the supply chain has been an area of debate in the dairy sector for many years. Throughout our lobbying work, NFU Cymru has been clear that we don’t want to ‘fix anything which isn’t broken’ as there are many successful relationships that exist across Wales between farmers and milk buyers. However, there are other contracts which place a disproportionate amount of risk on the farmer and in the past, we have seen contract terms and pricing schedules change at the buyers discretion often at short notice and without negotiation or agreement.
This decade of campaigning has resulted in legislation being passed by the UK Government which introduces mandatory minimum terms for dairy contracts, essentially a code of conduct which all milk contracts must adhere to. The main areas covered by legislation include provisions covering pricing mechanisms, exclusivity and volume, contract variation, termination (including notice periods), enforcement and bonuses / penalties. It also gives certain exemptions to farmer groups like co- ops and producer organisations which improve their bargaining power and make them more attractive to industry.
Timeline
Now this legislation is in force it means that all new contracts issued after 9 July 2024 must be compliant with the code and all existing contracts, must be brought into compliance by 9 July 2025.
Member meetings
NFU Cymru is organising several member meetings across Wales to discuss the issue. At the meetings members will be able to hear from a panel including NFU Cymru Dairy Board Chair Jonathan Wilkinson, NFU Cymru staff and legal advisors on what this legislation says and what it means for you.
The panel will also include a farmer that is a member of a producer organisation who will be able to talk about the role of farmer representation in the dairy supply chain.
Register for a meeting
To register to attend one of these meetings please book online below, email [email protected] or call NFU Cymru on 01982 554200.
*Please note the issue will also be discussed at an upcoming Monmouthshire County meeting should any dairy farmers in South East Wales wish to join.
