NFU Dairy Board Chair Ian Harvey is pressing dairy farmers to respond to the ASCA (Agricultural Supply Chain Adjudicator) survey which seeks to understand how the UK milk sector is responding to FDOM24 (The Fair Dealing Obligations (Milk) Regulations 2024).
Particularly, the Adjudicator wants to know how relationships between producers and purchasers have worked during the recent period of volatility. The survey also seeks views on the regulations and the role of the ASCA.
Ian said: “It’s encouraging for all UK dairy farmers that the Adjudicator is taking an active role in investigating non-compliance in our sector and seeking to address power imbalances across the dairy supply chain.
“While farmgate milk prices find themselves in a slump at this current time, we know that the long-term outlook for milk markets globally shows that demand for dairy will continue to rise. The UK dairy sector and processing capacity must be in a strong position to meet this demand. It is vital that, when we do start to see an upturn in dairy markets, farmgate prices also match the speed of market recovery.
“Proper enforcement of the Fair Dealing Regulations is the first step in providing dairy farmers with the trust, certainty and clarity that they are receiving a fair price. We encourage all dairy farmers to engage with this survey to help capture current understanding and compliance, and ensure the regulations are fit-for-purpose for the future to enable British dairy farmers to continue producing high quality dairy products.”
The survey will close on Monday 20 April.
The NFU is aware that a number of issues have been raised with ASCA in recent months, by milk producers and third parties via our ‘in-confidence’ channel. These include:
- whether or not price changes have been made in line with contractual obligations;
- proposed changes/ variations to contract introducing additional tiered pricing structures (i.e. A/B/C pricing) alongside additional restrictions about supplying other milk purchasers;
- the introduction of volume management schemes alongside the requirement for producers to provide additional information and meet additional/ enhanced criteria for supply; and
- changes proposed/ made to contracts with little notice or prior engagement with producers.
ASCA says it is monitoring the position closely and will investigate any formal complaints made by producers.
Read the Adjudicator’s blog: GOV.UK | A survey for the milk sector
