As Scotland slowly eases its lockdown restrictions, Scotland’s dairy farmers are looking to build stronger supply chains and discuss milk contracts as they reset, recover and restart from the impacts of Covid-19.

The Union has recognised that resetting and restarting as we emerge from the crisis will provide significant opportunities for Scottish farmers, crofters and growers.  All NFU Scotland’s commodity committees and working groups – combinable crops, livestock, milk, pigs, poultry and specialist crops – have identified key steps and actions needed.

For those producing milk, the priorities are the following:

• Engage on all discussions relevant to government support options for dairy farmers.
• Work with processors to ensure any adverse impacts on producers are minimised and returns to farm businesses are maximised.
• Engage with processors to assess if their business requirements have changed during the recovery stage to ensure that producers can adapt.
• Deliver the forthcoming milk contract consultation and engage with the membership.
• Deliver the Scottish Dairy Growth Board Dairy Future Report, including increasing export markets for Scottish dairy produce and inward investment for increased dairy processing capacity.
  

Milk committee chairman, Gary Mitchell, who milks cows near Stranraer, Wigtownshire said: “What an extraordinary spring.  When the Milk committee met in March, we were joined by Cabinet Secretary for Rural Economy Fergus Ewing and had a very useful discussion on milk contracts, future investment in dairy processing in Scotland and all the environmental challenges ahead for dairy farmers.

“A few days later, there was a dramatic change, we hit lockdown and a real challenge came to the sector.  We immediately took lots of calls from farmers and processors regarding the shutdown of restaurants, hotels and cafes.  So many changes happened so quickly and that had a real effect on the supply chain.  Overnight, everyone was going to a shop or a retailer to access milk and dairy.

“That brought a big change to how things operated. Farmers were worried about getting their milk lifted and consumers were asking why they couldn’t get milk on the shelves,  It took a few weeks to get a grip on the whole dairy market situation during the initial response phase to Covid-19.

“Now, we are in reset and restart and heading for recovery, and we need to focus on how we can improve our supply chain.

“A lot of work by NFU Scotland in recent years has also been spent on milk contracts.  I am pleased to say that the UK Government and devolved nations will be launching a consultation on contracts in next few weeks.

“I would encourage all farmers to take part it.  It is all about the future.  It is not just about a farmer’s milk contract, but about the whole chain from farmer to processor to retailer and other outlets and making that chain better.”  

Notes to Editors

• NFU Scotland sees the role of all farmers and crofters as central to Scotland’s Covid-19 recovery process given the range of economic, environmental and social benefits they can deliver.  NFUS believes Scottish agriculture should:
  • produce the high-quality food and drink that its customers want.
  • embrace change and seek new market opportunities.
  • lead in the delivery of climate ambitions and a flourishing environment.
  • drive sustainable rural development, helping rural communities thrive and prosper.
  • contribute to key objectives on animal health and welfare and promote human health and well-being.
• NFU Scotland has initiated reset, restart and recovery plans for different sectors of Scottish agriculture. The sectors covered are livestock, milk, pigs, poultry, specialist crops and combinable crops.   
• A short video of Milk Committee Chair Gary Mitchell discussing the Union’s priorities is available to watch on the Union’s Facebook page at: www.facebook.com/pg/nfuscotland/videos/
  

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Contact Bob Carruth on 0131 472 4006