More Dairies Commit to Fair Contracts

UK - One year on from the historic signing of the ‘heads of terms’ agreement for what became the Dairy Industry Code of Best Practice for Contractual Relations, the NFU can announce three more dairies now committed to the code.
calendar icon 18 July 2013
clock icon 2 minute read
National Farmers Union

Barbers, Trewithen dairies and Wyke Farms are all at the final stage of drafting and roll-out of their respective new milk supply contracts. These developments follow constructive and positive dialogue with farmer suppliers and the NFU.

In addition, Tesco have adapted the terms of their supplementary contract with TSDG core farmers to fully comply with the code, while both Yeo Valley and Nom Dairies have reiterated support for the code in relation to their supplies of milk from third parties, despite not buying milk directly from farmers.

NFU dairy board chairman Mansel Raymond said: “While progress is being made the work of the NFU and the Dairy Coalition continues. We are delighted to see three more dairies become compliant, and we will be redoubling efforts to convince other milk buyers to commit to the code, so that farmers can have confidence and trust in their relationship with their milk buyer.

“We are acutely aware of the short-term financial difficulties faced by many farmers. High costs during the winter have left many of our members in a very difficult place this summer and price rises are too slow coming from the market place. So we are calling on milk buyers to deliver a fair and sustainable milk price for farmers.

“According to recent DairyCo analysis of European farm gate milk prices (LTO league table, UK processor prices relative to Average European prices) and also the latest AMPE and MCVE figures, some British milk and dairy buyers are off the pace when it comes to delivering a fair and sustainable milk price to British farmers.

“As we highlighted in the recently launched ‘Compete to Grow’ vision and strategy for the British dairy industry; farmers need confidence to maximise the opportunities for growth that lie ahead. That confidence must be built on a foundation of equitable contracts and a sustainable price for their milk.”

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