NFU Scotland believes the coming year will bring the important issue of milk contracts to prominence for all involved in the dairy sector in Scotland and the UK.

The upcoming consultation on the introduction of mandatory milk contracts with minimum standards is a unique and tremendously significant opportunity and, NFUS believes, will not be offered again.

Commenting on the milk contract consultation, Vice President Gary Mitchell said: “This may be more significant than Brexit as 90 per cent of a dairy farmer’s income is directly driven by the terms of their contract rather than support.

“The opportunity to be offered by the UK and devolved Governments recognises that the dairy supply chain does not represent a balanced, fair refection of the vital part played by producers.

“Some processors will not agree, but there is a strong case to be made that an efficient, competitive dairy sector can only be achieved by an understanding that all in the chain rely on each other, and a fair share of risk and reward must be established.

“Discretionary, imposed pricing; volume management and other important terms should not be forced on milk producers without agreement any longer.

“The options are likely to be complex, but the UK farming unions have already completed very significant research with the help of independent, objective experts and while open minded to all options we are convinced that there is enormous potential in developing a UK version based on the Common Market Organisation (CMO) dairy legislation offered by government.

“We urge farmers and processors to engage and be open to the logical, reasoned argument. The Unions want to use this initiative as a catalyst.

“Once the consultation id formally launched, we will engage with our members in the months ahead as a priority to explain the options in an open and transparent manner, develop views and articulate these to government and processors. This is a hugely important opportunity and I urge all Scottish dairy farmers to engage.”  

Ends

Contact Bob Carruth on 0131 472 4006