Dairy crisis summit tackles milk contracts

“… A working group will be convened to look at all aspects of milk contracts, including … recommendations of the ​[dairy industry] Voluntary Code review and the need for more trust and transparency when it comes to milk buyers’ contracts with suppliers,”​ said National Farmers Union president Meurig Raymond, who attended the meeting​.

‘Developing new markets’​

The group would also further explore the role of futures in the dairy sector, he added. “Longer term, government will support the UK dairy industry in its ambition to reduce the trade deficit on dairy through encouraging and developing new markets for export.”​

The summit was hosted by Elizabeth Truss, secretary of state for the Department for Environment, Food and Rural Affairs.

Raymond said Truss had made clear she would progress demands for immediate help, such as looking at overdue EU Single Payment Scheme payments owed to farmers and staggering tax payments and bank support.

“We continue to believe that government should also look at addressing other important areas including lifting the​ EU intervention price and profit averaging over a longer period,”​ he said.

‘We need action’​

“It was reassuring that everyone around the table today – government, retailers, processors and banks – showed commitment and a desire to back British dairy farmers. What we need to see now is action to help those farmers through this difficult period.​

“I would like to thank the secretary of state for hosting today’s meeting, which gave us an opportunity to discuss ways of helping dairy farmers across the country who are struggling to cope with the impact of current market volatility.”​

Dairy UK has launched a manifesto​ setting out what the dairy industry expected of the main political parties in the run-up to the general election in May.