This UK wide consultation has been prepared by Defra, in agreement with the devolved Governments, in response to concerns raised regarding the unfair treatment of dairy farmers and the ability for processors and retailers to lower milk prices under current contract agreements.
In 2012, a voluntary code of best practice on contractual relationships in the dairy sector was agreed by the industry. There was a preference to allow sufficient time for the voluntary code to take effect in addition to the right to review the situation and, if necessary, reconsider the introduction of legislation on contracts.
A formal call for evidence in 2016 revealed the challenges that dairy farmers face with contractual agreements. These include variations in contract terms and difficulties in terminating contracts following dramatic price declines. Such challenges have been further highlighted during the Covid-19 pandemic, suggesting that the voluntary code is not having the desired impact.
A total of 13 member states of the EU have introduced laws on written milk contracts in an attempt to stabilise markets
The deadline to complete the survey was 15 September 2020. Please click here for more information.