Blog: Dairy code of practice welcomed by industry
Michelle Russell | 4 October 2012
UK dairy processors and farmers welcomed the final seal of approval of the dairy code of practice this week aimed at ensuring fairer contracts for dairy farmers.
Industry leaders agreed to the voluntary code at the end of August following months of talks with processors and farmers' representatives. The document is designed to ensure balance in contractual terms for all parties.
A tentative "heads of agreement" on a voluntary code of practice was agreed in July after talks with the UK government. The discussions were held amid anger from farmers at cuts to the price of milk from the UK's largest processors.
As a result, a formal agreement between Dairy UK, the NFU and the NFUS on the voluntary code of best practice on contractual relationships between milk buyers and dairy farmers was confirmed early last month.
The NFU, which has championed the need for improving dairy contracts said it was "delighted" the initiative is now ready to use.
"We're very pleased that at long last there is light at the end of the tunnel so we can move forward with the industry on a robust and ambitious strategy for the dairy sector," said NFU dairy board chairman Mansel Raymond.
"We will now be pressing ahead with a number of briefings up and down the country so dairy farmers and processors can see the many beneficial terms of this code translated into beneficial terms in milk supply contracts."
The code means farmers must now be given 30 days notice of change to prices or other contractual terms, allowing them to exit contracts with a month's notice if they disagree with the alterations. It encourages processors to engage more with producers and their representatives over changes.
US foodservice distributor Sysco has pulled the plug on its plan to buy local rival US Foods, four months after the country's competition watchdog moved to block the deal....
In an announcement that would have surprised few, Kraft Foods Group said today (1 July) its shareholders had thrown their weight behind the plans to combine the business with HJ Heinz. The market's at...
Whole Foods Market already had a reputation for being pricey. This will only be compounded by news that the retailer has been accused of routinely overcharging consumers by overstating the weight of p...
Dutch supermarket operator Ahold and Belgium-based retailer Delhaize Group announced today (24 June) that a long-awaited merger has been finalised in a move these two European retail giants hope will ...
- Focus: ConAgra own-label exit plan is about growth
- How the CGF plans to halve global food waste
- Focus: Will synergies lift Ahold Delhaize in US?
- IRI – The opportunity of range optimisation
- 10 Things to Learn - JBS's acquisition of Moy Park
- ConAgra confirms private-label exit
- Kraft Heinz unveils management structure
- Kellogg eyes trends with product launches
- CMA "accepts" Muller's revised Dairy Crest offer
- Kraft faces lawsuit over 'natural' claims