Ben Lake MP encourages dairy farmers to respond to consultation


Ben Lake MP is encouraging dairy farmers across Ceredigion to respond to the Welsh Government’s Dairy Contracts Consultation.  

The Dairy Contracts Consultation is a joint consultation agreed by all four UK and devolved Governments, consulting on regulations on dairy contracts between farmers and processors to address bargaining power, unfair or unclear contract terms, trust and transparency in the supply chain. 

The consultation was prompted by evidence and recommendations from the independent Grocery Chain Adjudicator (GCA) review. The review highlighted the unfair pressures placed on primary producers; for example, through unfavourable contract terms and short notice of price reductions and specifications. These practices limit the ability of dairy farmers to budget effectively and manage price volatility. The review identified problems with the balance of bargaining power in the groceries supply chain. 

Farmers are encouraged to submit their views to the consultation ahead of its 15th September 2020 closure. 

Ben Lake MP said:  

“The disruption caused by Covid-19 on the dairy sector has amplified the imbalanced way in which risk is shared across supply chains. The debate on regulating milk contracts has long been drawn out in the UK, but the experiences of milk producers during this pandemic should serve as an impetus for urgent reform. 

“I would like to see flexible and innovative regulation that not only delivers fair terms for farmers, but an equitable balancing of risk between farmers and buyers. This would ensure a much more sustainable position for our dairy farmers in the long term. 

“The Dairy Contracts Consultation provides an opportunity to ensure price, pricing mechanisms and all related terms between farmers and processors are agreed through free negotiation and can’t be varied without agreement. I urge all dairy farmers in Ceredigion to respond to this consultation to make sure their voices are heard.” 

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