The power of supermarkets must be curbed to end dairy farmers’ insecurity caused by “unfair milk contracts”, industry bodies have urged.
The group wrote to Defra secretary Thérèse Coffey last week insisting it must resolve the “imbalances of power” in dairy by publishing a new code of conduct.
This is a “vital opportunity to build more positive relationships based on fairness, transparency, co-operation and sustainability, right across the dairy value chain”, said the letter signed by several organisations, including the Tenant Farmers Association, the Nature Friendly Farming Network, and the RSPB.
“Imbalances of power still exist within the dairy supply chain and can put immense pressure on farmers,” it said, referring to “first-hand stories of abusive practices and unfair clauses in contracts”.
This not only impacts farmers’ wellbeing but also the ability of farmers to build a more resilient and climate-friendly sector, wrote the group.
It also added that “skyrocketing input costs” have put dairy producers under greater pressure and have made the code more urgently needed.
In February 2021, ministers announced plans to issue a new code of conduct. However, it has not yet been published.
At the time, ministers said a new statutory code of conduct would “provide a guiding framework, establishing minimum standards but also providing businesses with the flexibility to adapt contracts to their individual circumstances”.
The letter acknowledged the challenges and upheavals of the past two years but stressed the need for the code to be “robust, thorough and properly enforced” to bring about meaningful change.
Defra said it had committed to developing regulations establishing legally binding minimum standards of contractual practice in the dairy industry, and it was working to introduce them as quickly as possible.
No comments yet