The government yesterday launched a consultation seeking to end any “unfair practices” across the UK’s dairy sector.
Evidence gathered during the Groceries Code Adjudicator’s (GCA) Call for Evidence in 2016 highlighted how unfair practices have persisted in the dairy industry. The consultation aims to explore whether regulations could be introduced to ensure farmers are treated fairly.
The initial evidence suggested “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. It is claimed that this leads to uncertainty and pricing that can be unfair to dairy farming businesses.
The government’s consultation is 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. It is claimed that this will 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 Victoria Prentis 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.”
