Auto Trader Ltd
Farminguk
28 June 2016 | Online since 2003
Briefing Media - FG Classified


19 February 2013 09:27:57|Dairy,News

Arla launches direct milk supply contract


The first milk supply contract fully compliant with the new voluntary code of best practice has been launched by Arla Foods.
The new Arla Direct deal features liquid and compositional variations, a volume bonus for larger producers, seasonality options and a 12-month notice period, with the three-month trigger as specified in the code.
"This is an important and positive step for Arla Amba’s UK dairy business. It is vital that the Arla shows strong leadership and a commitment to equitable contractual relations with farmers suppliers" said NFU dairy board chairman Mansel Raymond.
The dairy coalition warned in January that milk buyers must implement the dairy industry code in contracts or face the consequences'.
The coalition, NFU Cymru, the NFU, NFU Scotland, FFA, TFA, WFU and the RABDF also called for further price rises, urgently needed by farmers to be forthcoming, and that companies not complying will be made public.
"It is the responsibility of every milk buyer to ensure the voluntary approach to improving milk contracts succeeds. The alternative is legislation and the coalition will not rest until we see better more balanced contracts for dairy farmers" said Raymond.
NFU Cymru Deputy President Stephen James said, "The coalition has laid down the challenge to David Heath to put his full support and force behind the full implementation of the code."
"As a coalition we are committed to the success of the code and trust the UK Government to be equally committed. That said, we welcome David Heath’s recent challenge to processors, when he told the Dairy UK board, that if contracts do not improve via the voluntary route, the UK Government will look to legislate."
It has been launched as part of the cooperative's recruitment drive to secure an additional 500 million litres of milk in the UK and is being offered at a standard litre* price of 30.02ppl.
"Within the dairy contract code, there are specific exemptions for potential and existing co-operative members, for instance the right to terminate a contract on three months’ notice does not apply" said Raymond.
"The NFU firmly believes that producers should be offered the freedom of choice between the commitment and longer term benefits of being a co-operative member or a direct supply relationship, as defined by this important new contract.
"The NFU is committed to achieving better and more balanced contracts for its dairy farmer members. We congratulate Arla on taking this important first step and urge all other milk buyers to fundamentally review their milk supply contracts to ensure full compliance with the dairy contract code."

Download



0 Comment


Name

Please enter your name


Email

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

No comments posted yet. Be the first to post a comment


Australia | 28 June 2016
Dairy farmers face tight squeeze

High-cost dairy farmers face a tough outlook after industry behemoth Murray Goulburn set an opening farmgate price for the 2017 season of just $4.31 a kilogram, some 14 per cent below the $5 a kilo on...


USA | 28 June 2016
Dealmaking in agriculture is vibrant, causing some to worry

The wave of agribusiness mergers and acquisitions is likely to continue rolling. After several blockbuster deals that have been announced since December, analysts said the divestitures required to ...


USA | 28 June 2016
How to revive local agriculture in the United States

“I think this administration has really missed their chance to do some innovative things, but also to help the rural economy,” Representative Chellie Pingree said on Monday. The Maine Democrat is ...


Uganda | 28 June 2016
Investors flock Uganda’s Dairy farming industry

The Ugandan government has said that the livestock sector is attracting more investors especially in dairy processing which in turn is helping farmers earn more from the sector. President Museveni ...


USA | 28 June 2016
Farmers and ranchers mixed on immigration

The Supreme Court’s split decision on immigration last week is only ratcheting up commentary this election cycle. It is also creating unease for those operations that rely on immigrant labor. We’ve...



Trending Now

Viewed
Discussed

Farms and Land for sale

PropertyLocation
PropertyAgent
PropertyMinimumPrice
PropertyMaximumPrice
PropertyCategory

Holiday Rentals search

AccommodationKeyword
AccommodationType
AccommodationCounty
AccommodationStarRating


Top stories you may have missed
closeicon
Username
Password