EU food chain proposals are a good starting point for discussions, but the diversity of the bloc’s food industry must be taken into account, Dairy UK said in response to yesterday’s proposals from the European Commission on improving the food chain.
Dairy UK Director General Jim Begg said: "It is right that the Commission is thinking about how well the food chain works, improving transparency and managing price volatility. Seesawing prices are dangerous and disruptive for consumers, processors and farmers.
"Derivatives and futures contracts may well have a role to play in this, even in the dairy industry. And comparing best practice on contracts could yield some useful results. The Commission is right to make this a voluntary exercise, because contracts belong firmly in the commercial domain.
"There is always room for improvement, but it is clear that the UK is more advanced than many European neighbours when it comes to milk contracts. The diversity and complexity of UK supply arrangements, particularly in retailers’ segregated milk chains, have given British farmers some protection from the recent collapse in commodity prices.
"In making its proposals today, the Commission is clearly working on behalf of consumers to find general solutions across all food sectors for all member states. Dairy UK will scrutinise the proposals closely and feed into the debate as it unfolds, especially in the High Level Group."