Milk pricing under scrutiny as farmers asked to share experiences

Dairy farmers facing falling milk prices are being urged to speak out on how they are being paid, as regulators examine fairness across the supply chain.

Producers are being urged to respond to a new survey from the Agricultural Supply Chain Adjudicator (ASCA), which is reviewing how milk pricing and contracts are working under the Fair Dealing Obligations (Milk) Regulations 2024.

The consultation comes at a time of continued volatility in the sector, with concerns over pricing, contract changes and the balance of power between farmers and buyers.

NFU Dairy Board chair Ian Harvey said the Adjudicator’s involvement was a positive step. He said: “It’s encouraging for all UK dairy farmers that the Adjudicator is taking an active role in investigating non-compliance in our sector and seeking to address power imbalances across the dairy supply chain.”

ASCA is seeking feedback on how relationships between producers and purchasers have operated in recent months, and whether the new rules are delivering fairer outcomes.

Harvey said that while farmgate milk prices are currently in a slump, the long-term outlook for global dairy demand remains strong.

“It is vital that, when we do start to see an upturn in dairy markets, farmgate prices also match the speed of market recovery,” he said.

He added that enforcing the rules properly is key to rebuilding confidence, saying “proper enforcement of the Fair Dealing Regulations is the first step in providing dairy farmers with the trust, certainty and clarity that they are receiving a fair price”.

The NFU is urging farmers to take part, saying responses will help ensure the rules remain “fit-for-purpose for the future”.

Concerns raised by producers in recent months highlight the scale of the issue.

These include whether price changes are being applied in line with contracts, the introduction of tiered pricing structures, and restrictions on supplying multiple buyers.

Farmers have also reported the use of volume management schemes and contract changes being introduced with little notice or consultation.

ASCA said it is monitoring developments and will investigate formal complaints where necessary.

With confidence in milk pricing and contracts under pressure, the feedback gathered will play a key role in shaping how the system works for farmers in future.

The survey closes on 20 April.