Agreement for milk supplies
Dairy UK has made an agreement with the National Farmers Union (NFU) and NFU Scotland (NFUS) for a code of practice on future contracts for milk supplies.
The code is voluntary, and is hoped to bring trust between milk producers and buyers following a series of protests and blockades from farmers against declining payments for milk.
Unions said the milk payment cuts could force hundreds of farmers out of business as the animal feed costs were rising at the same time. In the past year the price of cream has fallen globally by almost £800 per tonne, according to industry representatives.
If the deal fails to work ministers could bring in legislation.
Jim Begg, Dairy UK Director General, said: "This important initiative builds upon existing arrangements, which give farmers and processors security in business relationships, whilst adding additional safeguards that will assure farmers that their contracts are not putting them at a disadvantage in the marketplace."
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