More dairies make fair deal promise

The commitment, made this week by Barber’s Dairy in Birmingham, Cornwall-based Trewithen Dairy and Wyke Farms, Somerset, means 15 dairies are now signed up to the code.

According to the National Farmers’ Union (NFU), all three dairies are at the final stage of drafting and rolling out their respective new milk supply contracts following constructive and positive dialogue with farmer suppliers and the NFU.

Retail giant Tesco, meanwhile, has adapted the terms of its supplementary contract with core farmers in its Tesco Sustainable Dairy Group so that it fully complies with the code, and Yeo Valley and Nom Dairies have reiterated their support for the code in relation to their supplies of milk from third parties.

Mansel Raymond, the NFU’s dairy board chairman, said work to create a fairer system across the whole of the dairy industry 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,” Mr Raymond said.

“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.”

Jim Begg, director general of Dairy UK, the organisation representing all parties involved in the dairy industry, said: “The Voluntary Code has been a success. It has reached a penetration of 85 per cent, and that’s a huge achievement. This figure may increase, but I’ve spoken to pretty much everyone who has not signed up and I’m confident that they’ve examined the implications. Many, in discussions with their farmers, have decided to stick with their existing arrangements and frankly that’s fine.

“It’s still not been operating for a full production year, but I see no harm now in having a thorough review of how it’s working. The objective is to improve it, and make more people comfortable with its operation. So I expect to discuss this with the farming unions very soon.”