Contracts are seen as a key tool to help farmers to battle volitility in the sector.
ADVERTISEMENT
Speaking after a meeting between the NFUS and First Milk on Tuesday, NFU milk policy manager George Jamieson again called for milk contracts to be introduced between farmers and processors.
“Farmers are carrying too much of the risk currently,” according to George. “There is an imbalance of power in the industry and it is the farmer that is suffering. Contracts won’t get rid of volatility in the market but it might make it easier to manage.”
The move comes after Defra accepted a recommendation from the Grocery Code Adjudicator that dairy farmers are disadvantaged by an imbalance of power in the dairy supply chain.
ADVERTISEMENT
“Genuine collaboration is needed by the industry and we are willing to look at it with an open mind, whether it is contracts or a mandatory code of practice for processors,” said George.
“The weakness of the voluntary code of practice wasn’t in the policies, it was in the fact that it was voluntary so processors didn’t implement it.
“We are not saying that contracts have to be rigid or inflexible and I think there is a lack of understanding as to what a contract can offer. There could be a pricing mechanism installed that could be flexible.”
Positive outlook
The outlook for dairy farmers for the next few months is positive according to George: “All the market indicators are there to suggest that prices will be strong for the next three months. Commodity prices are quietly rising and there is no reason that we shouldn’t hit a milk price of 30ppl in the next few months, there is no reason why it shouldn’t be that now.”
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Speaking after a meeting between the NFUS and First Milk on Tuesday, NFU milk policy manager George Jamieson again called for milk contracts to be introduced between farmers and processors.
“Farmers are carrying too much of the risk currently,” according to George. “There is an imbalance of power in the industry and it is the farmer that is suffering. Contracts won’t get rid of volatility in the market but it might make it easier to manage.”
The move comes after Defra accepted a recommendation from the Grocery Code Adjudicator that dairy farmers are disadvantaged by an imbalance of power in the dairy supply chain.
“Genuine collaboration is needed by the industry and we are willing to look at it with an open mind, whether it is contracts or a mandatory code of practice for processors,” said George.
“The weakness of the voluntary code of practice wasn’t in the policies, it was in the fact that it was voluntary so processors didn’t implement it.
“We are not saying that contracts have to be rigid or inflexible and I think there is a lack of understanding as to what a contract can offer. There could be a pricing mechanism installed that could be flexible.”
Positive outlook
The outlook for dairy farmers for the next few months is positive according to George: “All the market indicators are there to suggest that prices will be strong for the next three months. Commodity prices are quietly rising and there is no reason that we shouldn’t hit a milk price of 30ppl in the next few months, there is no reason why it shouldn’t be that now.”
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS