The EU Commission’s proposed package of measures to address dairy farmers’ weak position in the supply chain, eliminate unfair commercial practices and inject control over the price farmers receive for their milk is very promising, says the NFU.
European Commissioner for Agriculture Dacian Ciolos said today the Commission would adopt proposed measures to strengthen the position of dairy farmers in the supply chain and enshrine minimum standards for milk contracts in response to recommendations by the High Level Expert Group in June.
NFU chief dairy adviser Hayley Campbell-Gibbons said: "We have been eagerly awaiting the Commission’s formal proposals, which certainly look promising. These measures could prove beneficial for UK dairy farmers, providing Defra gives them its full backing.
"It’s no surprise to us that the Commission has concluded that dairy farmers hold a weak position in the supply chain, are subjected to unfair commercial practices and suffer from having a complete lack of control over the price they receive for their milk. It’s positive to see that the Commission has also come out with some extremely positive and robust measures to address these issues.
"Of most relevance to UK dairy farmers is the Commission’s requirement for milk contracts to set out the price farmers will be paid for their milk, a way of varying the price – based on specified market indicators or a formula – the volume of milk to be supplied, and the duration of the contract, with specific termination clauses.
"The NFU has invested a huge amount of its lobbying efforts in the High Level Expert group process, and it’s clearly paid off as many of the Commission’s requirements on contracts echo our own recommendations for improvement. The NFU would also like to see exclusivity considered alongside any volume specification so that producers are not tied in to one milk buyer.
"The proposals mean that the UK Government now has a unique and powerful opportunity to help address the dysfunctions in the dairy supply chain by backing the EU Commission’s proposals for changes to milk contracts and producer bargaining power. That said, Commissioner Dacian Ciolos has also made it clear that producers should call for contracts to be put in place that meet these requirements, even where a member state may not make it obligatory.
"For this reason I’d like to see UK milk buyers respond positively to the European Commission’s requirements. The time for resisting change is over. Now is the time for milk buyers to embrace the benefits these measures could bring to them and their farmer suppliers."
The proposals will be debated by the European Parliament in January and the NFU, with its resources and influence in Brussels, will now be working closely with MEPs to ensure that UK dairy farmers are able to gain maximum benefit from these proposals.
