In June, Defra and the Devolved Governments launched a consultation into contractual reform for the dairy sector. An earlier review of supply chain fairness by the Grocery Code Adjudicator found an uneven distribution of power within the dairy supply chain and views were sought on contract regulation aimed at improving fairness in the dairy supply chain.
The FUW responded to the consultation after consulting with it’s Milk and Dairy Produce Committee and County Branches across Wales. During the Covid-19 pandemic, the Union received reports from many members who had borne a disproportionate amount of the cost in the supply chain when markets changed overnight.
In light of the pandemic, the FUW supported contract regulation. However, due to the large number of members that supply farmer owned co-operatives, it was also felt that any newly implemented regulations should provide the flexibility to allow for those co-operatives to continue to operate as they do currently for the benefit of their members.