Dairy Coalition draws up blueprint to ensure long-term future for industry

Drawn up by the so-called Dairy Coalition, made up of farming leaders and campaign groups, it is designed to ensure a long-term future for the British dairy industry which has endured one of the most challenging years in recent history.

Among the areas included are provisions for 30 days’ notice of change to a farmer’s price or other contractual terms and for farmers to exercise a right to terminate the contract on a month’s notice if they disagree with the change.

Price cuts imposed by retailers and processors left many farmers being paid significantly less for their milk than it was costing them to produce it.

Widespread protests by farmers led to processors performing a U-turn on price cuts but things still remain uncertain for many farmers.

However, this week did see Arla Foods, based in Leeds, announcing a 2.5ppl increase in its farmgate price, something which drew praise from many farmers.

NFU dairy board chairman Mansel Raymond said the primary objective of the Dairy Coalition was to see a fair and functioning market place for the UK dairy industry. “We formed this coalition because our dairy market simply wasn’t working,” he said.

“This was made very clear when we saw devastating price cuts this spring, and further price cuts planned for August. Market highs, when we have seen them, have not been passed down to the farm gate.

“We need to ensure we deliver on our ten-point plan and we have committed to working as a coalition to ensure we do just that. We will focus on three key areas including exposing bad practices, redefining and empowering the farmers’ role in the supply chain and ensuring the supply chain is transparent and fair.”

Farmers For Action chairman David Handley said: “We are committed to working as a coalition to represent the views of each organisation and to apply pressure to deliver on our ten-point plan. This will help us to secure a long-term future which will benefit the whole of the British dairy industry and safeguard British dairy products for consumers.”

Dairy UK director general Jim Begg said: “The code should also enable dairy farmers and processors to build relationships of trust and mutual understanding.”