The NFU has launched a new campaign to drive lasting change in the dairy sector through better milk contracts.
The campaign will show how improvements can be made to the benefit of both farmers and milk buyers. Underpinning it is a series of meetings with all major and many smaller processers and a contracts summit for farmer representatives on buying groups and co-ops, given their critical role in deciding contracts with buyers.
However, the central part of the drive is our model milk contract designed to bring greater fairness to the relationships between milk producers and purchasers. Included in the document are flexible terms and conditions that the two unions believe should be contained in raw milk contracts.
Download the model milk contract and accompanying guidance on the right.
NFU President Peter Kendall believes the timing of the new campaign is crucial.
He said: "I have been talking to dairy farmers up and down the country and it's clear that farmers are becoming more aware of the absolute importance of milk contracts. They are fundamental to the business relationship that exists between producers and their milk buyers. The demise of Dairy Farmers of Britain has left a very sour taste in the dairy industry and, while the industry managed to weather the worst of the storm, it served as a painful lesson in how vulnerable dairy farmers are.
"Through this campaign we are promoting the need for more balanced, professional, business-like contracts, which are tailored to the supply requirement of milk buyers and also bring greater certainty to the way milk prices are determined. At the same time milk contracts should allow dairy farmers to capitalise on other selling opportunities, manage risk, grow their business, and prepare the ground for the end of milk quotas in 2015."
- Paul and Jan Wynn - 17/05/2011
Farmers must speak with one voice and support each other. Milk contracts that are just that contracts which are worth the paper they are written on should empower the farmer to enable him to have the confidence to invest in the future and negotiate as a business man should and can in any other industry and in a fair and professional way. This is last chance saloon - wake up everyone and get behind the NFU Campaign - it may be our last chance to save ourselves. Attend the meetings, listen and support.
- andy paton - 25/03/2011
once again the NFU has failed to grasp the crux of the matter in trerms of milk contracts. Until milk producers are given true flexibility in terms of who they supply the market will always lack fluidity. Milk contracts and termination periods should be no longer than 3 months. In no other industry is the buyer guaranteed a supply for 12 months that a price hasn't been prior agreed. With a 3 month contract norm every buyer would run the risk of suppliers leaving on mass should they lag the market in terms of price. in that way the market may actually function with some degree of fairness.