NFU dairy vision makes progress
The entire dairy industry is being challenged to act on the recommendations of the NFU's Vision for the dairy industry.
In a progress report released at the NFU Conference, the NFU reveals a positive response to the groundbreaking document from all parts of the supply chain.
Speaking at the NFU Annual Conference NFU dairy board chairman Gwyn Jones said: "We have been extremely encouraged by the positive response to the original Vision document and already we have seen progress in key areas. We have seen changes to contractual arrangements, the launch of 2 new benchmarking projects by MDC and serious work on processor efficiency. Only last week Dairy UK announced the launch of a manufacturing excellence programme, a positive move by the processing sector."
The Vision progress report also identifies seven key areas for action in 2006:
• Completion of the Food Chain Centre dairy project
• Securing commitment from all retailers to British sourcing, especially for cheddar and generic cheese
• Developing a plan for promoting British dairy produce overseas
• Tackling imbalance in the supply chain and OFT opposition to consolidation of processing
• Creating supply chain partnerships with retailers
• Delivering new supply contracts and pricing models
• Tackling regulatory burdens, in particular, revisions to the Nitrates Action Plan.
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"We knew from the outset that delivering the Vision document would require time, determination and buy-in from all parts of the dairy supply chain and government.
"We want 2006 to be a watershed year for the dairy industry for the right reasons. Dairy farmer confidence is right on a knife edge and we urgently need to restore transparency and fairness to the dairy supply chain. If that is to happen a lot of work still needs to be done, particularly in the area of supply contracts and pricing models.
"Farmers are frustrated and justifiably want to see action now. However, they should remember that they are not without power when it comes to driving positive change and they should not be afraid to use it, as individuals and in groups, in relation to the contracts they sign for example.
"Many of the changes we recommend, such as contracts with break clauses, pricing models based on relevant market indicators, or long-term price commitments can be delivered with support from processors and, critically, the industry's major customers.
"Government also needs to do its bit as well to commit to a true partnership on environmental legislation and bovine TB."
