The Farmers' Union of Wales has thrown its support behind a bid by MPs to eliminate unfair contracts and create fairer and more balanced terms for Welsh dairy farmers.
The union's milk and dairy products spokesman Eifion Huws today welcomed the thrust of a Commons' Early Day Motion (EDM) sponsored by Plaid MP for Carmarthen East and Dinefwr Jonathan Edwards and already signed by four more Welsh MPs - Martin Caton (Lab) Gower; Elfyn Llwyd (Plaid) Dwyfor Meirionnydd; Hywel Williams (Plaid) Arfon; and Mark Williams (Lib Dem) Ceredigion.
The EDM, also signed by three MPs representing urban areas of England, welcomes the recently-published EU Dairy Package which establishes "clear and sensible" rules for price determination in milk contracts for farmers supplying a dairy other than a co-operative.
However, the EDM expresses concern that explicit provisions for minimum terms in contracts are left to member states to choose to implement and that the UK proposes a voluntary code.
"Dairy farmers are often adversely affected by poor contracts. They may be required to give 12 or more months' notice to pull out but the price the farmer is paid can be changed at will by the processor without notice," said Mr Huws.
"We support the EDM and, like the MPs who have signed it, we believe Government action is required to eliminate unreasonable contractual practices and create fairer and more balanced terms.
"The FUW calls for the introduction of legislation on this matter in any forthcoming plans to appoint a groceries and milk ombudsman."