The National Farmers’ Union (NFU) Scotland has expressed deep frustration over Lactalis’s abrupt decision to terminate contracts with 12 dairy farmers in Scotland, leaving them feeling blindsided. This move raises significant concerns regarding market stability and the need for stronger contractual protections for dairy producers.
The National Farmers’ Union (NFU) Scotland has expressed significant anger and disappointment over the abrupt decision by dairy processor Lactalis to terminate contracts with 12 of its dairy farmer suppliers in Scotland. The affected farmers, ten from Dumfries and Galloway and two from Ayrshire, were notified without any clear reasoning, leaving them feeling blindsided.
Lactalis, headquartered in France, made this decision following a business review of its milk supply in southwest Scotland. The farmers involved supply milk to Lactalis’s creamery in Stranraer through the Milk Suppliers Association (MSA), a cooperative responsible for delivering approximately 210 million liters of milk per year to the processor.
NFU Scotland’s Response
In response to Lactalis’s announcement, NFU Scotland has called for a meeting with both Lactalis and the MSA to seek a comprehensive explanation of the decision. The union has encouraged the affected farmers to reach out for support and assistance through the NFU or the Scottish Dairy Hub.
Andrew Connon, vice president of NFU Scotland, criticized the lack of clear reasoning behind the decision, stating, “Once again, it appears as though producers are to be dumped out of their current contract without clear reasoning and with few options to find alternatives in the current market.” He highlighted the challenges that dairy farmers face, particularly the lack of options for recourse when processors make sudden decisions.
Market Challenges and Calls for Contractual Protections
Connon emphasized the need for “clear protocols” in contracts that would safeguard producers when processors experience market difficulties. He raised concerns about how producers can invest and plan for the future when they can be dropped with little notice. He asked, “Why would anyone push to keep up with multi-decade investments when confidence in contracts only extends to 12 months?”
Furthermore, he pointed out that dairy farming in Scotland lacks adequate support, with no grant schemes available for investment. This reliance on private investment for improvements in response to market demand exacerbates the insecurity faced by farmers.
Connon’s remarks underline the importance of forthcoming milk contract legislation designed to provide greater protection for dairy farmers, ensuring that they are treated fairly and with respect within the supply chain.
Recent Developments in the Dairy Sector
This incident comes on the heels of the Tesco Sustainable Dairy Group’s decision to reduce the number of Scottish farmers supplying the retailer for its own label fresh milk, highlighting broader trends within the industry that are affecting the livelihoods of dairy producers. The NFU Scotland’s advocacy for stronger protections reflects a growing concern over the sustainability and stability of the dairy sector in the region.
As dairy farmers face increasing pressure, the need for transparent and fair contractual practices becomes ever more critical to ensure the viability of dairy farming in Scotland and to maintain the integrity of the supply chain.
