Neil Hamilton, MS for Mid & West Wales, and Leader of UKIP Wales is reminding farmers in Wales they only have a few days to have their say on future milk supply contracts.
Mr Hamilton, a member of the Climate Change, Environment and Rural Affairs committee, is urging them to take part in a consultation to tackle supply chain issues across the UK dairy sector which finishes on September 15th.
He said: “When the consultation was announced in June, I urged farmers across the country to make sure they respond and submit their views.
“It is an excellent chance for dairy farmers across the country to have their say on proposals for fairer conditions for milk contracts. They must take advantage of this opportunity.
“I know what a devastating impact Covid-19 has had on the whole rural economy, and many farms and businesses are really struggling to keep their heads above water. Farmers need all the help they can get to recover so it is vital they make their views known loud and clear.
“The Covid crisis has hit farmers particularly hard and they are under increasing pressure because several of their normal markets are no longer available to them. The massive drop in demand has impacted on red meat, poultry, vegetables and dairy.
“Milk price to the farmer has dropped dramatically, farms are forced to sell at a loss and gallons and gallons of milk are having to be poured away. We do need this protected for the future.
“I have said many times how vitally important it is to protect the dairy sector and with only days before the consultation window closes I would urge Welsh farmers to take part.”
NFU Cymru has been working with partners at the NFU, NFU Scotland and Ulster Farmers’ Union for many years to lobby for changes to dairy contracts. They have worked together on the 12 week consultation which seeks to end any unfair practices within the sector.
Dairy farmers and processors are being consulted to explore whether regulations could be introduced to strengthen fairness and transparency. This includes the possible introduction of mandatory contracts within the dairy industry.
Proposals include an option to introduce a mandatory pricing mechanism within all contracts between dairy farmers and processors. It would ensure the price paid for milk produced by the farmer is formally agreed within the contract, and that contract negotiations are agreed in a clear, fair and transparent way.
Chair of NFU Cymru Dairy Board, Abi Reader, said: “The launch of this long-awaited and important consultation on milk supply contracts will help drive change within the sector. At times when the market is under pressure, milk buyers often have the discretion to change contract terms and pricing mechanisms, even to introduce retrospective penalties and price cuts without negotiation.
“The recent Covid-19 crisis has seen many of these scenarios play out. Farmers were hit with price cuts at no notice, there was a unilateral implementation of A/B quotas, a lack of transparency over pricing and delayed payments, which left many businesses in an unsustainable position.
“This needs to change, and we must not waste this opportunity. We must work together for a positive outcome and that is why I urge all dairy farmers in Wales to respond to this consultation to make sure our voices are heard.”
You can find out more about how to respond by visiting the NFU Cymru website.
