UK farming unions have raised concerns about potential changes to the Fair Dealing Obligations (Milk) Regulations 2024, warning that adjustments to tiered pricing provisions could undermine protections for dairy farmers.
In England, the UK farming unions have expressed serious concerns about potential changes to the recently introduced Fair Dealing Obligations (Milk) Regulations 2024. On October 17, the unions addressed their worries in a letter to Daniel Zeichner, the Food Security Minister, warning that the proposed adjustments could undermine key protections for dairy farmers.
The regulations, which took over a decade to come into effect after the SoS Dairy Campaign, aim to create fairer and more transparent milk contracts. Designed following consultations with the dairy sector, the legislation ensures that contract changes cannot be imposed on farmers without mutual agreement. One of the key elements allows dairy farmers to enter non-exclusive agreements, enabling them to sell excess milk to other buyers when their primary purchaser does not need it.
However, the unions fear that the government is now proposing a change to the tiered pricing provisions. The adjustment would reportedly permit milk buyers to offer both bonuses and penalties tied to seasonal milk volumes, effectively allowing them to discount certain litres of milk, even under exclusive contracts.
The unions have long campaigned against the control buyers exert over milk prices and volumes. They argue that separating pricing and production volumes is essential for protecting farmers’ interests. Allowing primary buyers to discount milk while prohibiting farmers from selling it elsewhere contradicts the spirit of the new legislation, they say.
The farming unions stated their support for improving fairness in the dairy supply chain, but they believe the proposed tiered pricing interpretation would harm farmers. They have called on the government to clarify its position and provide a solution promptly to ensure the legislation achieves its intended purpose of empowering dairy farmers.
The letter marks the latest development in the push for fair dairy contracts, which comes at a critical time as farmers navigate rising costs and fluctuating market demands.
