Agreement reached

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Dairy UK, the NFU and the NFUS have reached agreement on a voluntary code of best practice on contractual relationships between milk buyers and dairy farmers.

Jim Begg, Dairy UK director general, said: “I am delighted that Dairy UK, on behalf of its members, has been able to reach agreement with the farming unions on the voluntary code. This important initiative builds upon existing arrangements, which give farmers and processors security in business relationships, whilst adding additional safeguards that will assure farmers that their contracts are not putting them at a disadvantage in the marketplace.

“The code should also enable dairy farmers and processors to build relationships of trust and mutual understanding. Only on this basis can the industry create the added value that will protect it from price volatility.

“We would hope that the spirit of co-operation that has resulted in this agreement can be carried forward into the future.”