Ask your processor why they are not signed up to the code, urges NFU

The NFU has today published a list of processors agreeing to give dairy farmers fair contracts, and is urging retailers and farmers to make sure they insist on their processors doing the same.

One year on from the #SOSDairy campaign, the NFU has revealed which processors have signed up to the Dairy Industry Code of Best Practice for Contractual Relations, ahead of the Livestock and Dairy event at the NEC on July 3-4.

With over 85 per cent of the processing market now signed up to the code of practice, the NFU believes it has been a success and marks real progress after years of NFU lobbying for contracts that will deliver fairness, and balance, to its members in their relationships with processors, day-in and day-out and for years to come.

NFU President Peter Kendall said: “Without doubt, the British dairy industry is in a better place now than it was 12 months ago, when price cut after price cut was forcing farmers to breaking point and there were genuine worries about the future of the industry.

“What we have done in the last year with the Dairy Coalition is to work really hard to get to a place where the industry can stand on its feet again, and the code of practice is a vital tool to ensure this happens.

“Signing up to the code means that farmers have flexibility in contracts they have never had before, encourages healthy competition within the market and also sends a clear message about the future of the industry. It gives confidence to people wanting to invest in British dairy and shows that people understand how important this industry is to the nation.

“We urge those not signed up to the code to do so now. Our cards are on the table. And our message to retailers and farmers alike is the same. If your processor is not on this list, you need to go to them and find out why they are not.

“Only when everyone is signed up can we have a fair, unified and profitable dairy industry that benefits the whole chain and will give us all an industry we can be proud of.”

Chairman of Dairy UK, Bill Keane, said the UK dairy industry needs to place its 'massive potential for growth' at the heart of its strategy for the future.

Addressing political and industry leaders at the Dairy UK annual dinner in London, Mr Keane said: “Around the world we can expect growth in demand for our products higher than most countries can for their whole economies.

“As economies develop, populations rise. The process of urbanisation will continue in developing countries so we can expect the demand for our products to rise. That is a pretty good situation to be in and it presents great opportunities. We have massive potential for growth.”

He said the industry could take ‘great pride’ in its achievements and can go from strength to strength.

“We should not for a moment underestimate the challenges that face our industry. Like other sectors we have tough decisions ahead of us as we try to create profitability throughout the supply chain.

“That said, our customers – and I mean our consumers – love our products. I think we would all do well to remember that. Britain loves dairy. We have done for centuries and dairy is part of the fabric of the nation. Not only do our consumers love it, the story is the same all over the world."

Recently Aled Jones, NFU Cymru Milk Board Chairman told dairy farmers in Monmouthshire: "For far too long we as dairy farmers have suffered the lows in the market and never receive the rewards when the markets are at a high. We are in a situation now again where there is insatiable and growing demand for dairy products globally. Dairy farmers like the rest of the supply chain should be able to benefit and capitalise from this."