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.

 


BLOG

If Kraft Heinz passed on Pinnacle, it should do so with Campbell

It's almost 18 months since Unilever rebuffed Kraft Heinz and, ever since, the rumour mill has spun over where the US manufacturer could look next. It's been reported today (2 August) the ketchup make...

BLOG

Maybe Trump is finding trade wars aren’t so easy to win

In March, a day after issuing stiff tariffs on imports of steel and aluminium, Donald Trump took to Twitter to give his verdict on trade disputes. Four months later, it looks as though Trump's confide...

BLOG

Upfield Foods, home to ex-Unilever spreads assets, makes notable appointment

UK food-industry veteran David Salkeld is to take a senior position at Upfield Foods, the newly-instituted business that is home to Unilever's former spreads assets....

BLOG

Nature's Path quits US organic trade body in "protest"

The Organic Trade Association, which represents the organic industry in the US, has seen a high-profile member quit the organisation, taking a swipe at the body's stance on policy issues....



Forgot your password?