The UK Government working with the devolved administrations
have today launched a
consultation seeking to end any unfair practices
across the UK’s dairy sector.
Evidence gathered
during the Groceries Code Adjudicator Call for Evidence in
2016 highlighted how unfair practices have
persisted in the dairy industry. This consultation will
explore whether regulations could be introduced to ensure
farmers are treated fairly.
This evidence suggests unfairness in the supply chain has
sometimes been caused by milk buyers having the power to
set and modify the milk price in a contract, often with
little notification. This leads to uncertainty and pricing
that can be unfair to dairy farming businesses.
To supplement wider efforts to support dairy farmers during
the coronavirus pandemic and into the future, the UK
Government with the devolved administrations in Scotland,
Wales and Northern Ireland have worked together to today
launch a consultation seeking views from dairy farmers and
processors across the whole country on whether future
regulation could be used to strengthen fairness and
transparency.
Proposals include an option to introduce a mandatory
pricing mechanism within all contracts between dairy
farmers and processors.
This would ensure the price paid for milk produced by the
farmer is formally agreed within the contract, and that
contract negotiations take place in a clear and transparent
way.
Farming Minister said:
It is absolutely vital that our dairy farmers are paid
fairly for their high quality produce and I am committed
to cracking down on any unfair practices within the UK
dairy industry.
I welcome all views to this consultation to determine how
best we can guarantee fairness across the supply chain.
This will help the industry continue its vital role in
feeding the nation and ensure our dairy farmers can
continue to be competitive in the future.
Scottish Rural Economy Secretary, , said,
I encourage all dairy farmers, processors and their
representatives to take part in this consultation and
ensure that their voices are heard on this matter.
Milk prices can vary and are often changed at short
notice for a variety of reasons which can cause major
issues for farmers in Scotland and across the UK.
It is vital that we look at any opportunity to address
any potential imbalance that exists between buyers and
producers and bring our supply chains closer together.
Welsh Government Rural Affairs Minister, , said:
The proposals we are consulting on today aim to ensure
our dairy farmers get the fair price for their high
quality produce they deserve and have fairer conditions
for their milk contracts. I urge the sector, farmers and
anyone with an interest to get involved and have their
say.
Today’s consultation is just the latest action we are
taking to support the sector during the challenging times
of this pandemic. We will continue to work with the
sector during these unprecedented times, so together we
can ensure a resilient future for our Welsh dairy
industry.
Northern Ireland Agriculture, Environment and Rural Affairs
Minister, MLA, said:
I am committed to raising the issue of fairness for dairy
farmers in the marketplace in the strongest possible
terms. I am pleased that Northern Ireland stakeholders
will have the opportunity to take part in this UK-wide
consultation and I strongly encourage all Northern
Ireland stakeholders to respond accordingly.
Today’s announcement is the latest action from UK
governments to support dairy farmers, following
the Dairy Response Fund
in England, which opened for
applications on Thursday 18 June
and a similar support
scheme in Waleslast month, which enables eligible
English and Welsh dairy farmers to access up to £10,000
each to help them overcome the impact of the coronavirus
outbreak.
This builds on recent action to temporarily relax
some elements of UK competition law to allow
suppliers, retailers and logistics providers in the dairy
industry to work more closely together on some of the
challenges they are facing.
