The announcement was made this morning (Tuesday, February 20, 2024) by British prime minister Rishi Sunak in his speech on the Nationwide Farmers’ Union (NFU) convention.
The NFU hailed the announcement stating that the laws would set up ‘transparency and accountability throughout the dairy provide chain by stopping contract adjustments being imposed with out settlement’ – thus fixing points round exclusivity and see intervals – and introduce clearer pricing phrases and a system that farmers can use to confirm the calculation of variable costs.
The laws could have an enforcement mechanism, with the secretary of state granted the powers to impose ‘substantial monetary penalties’ to those that had breached the principles.
The information comes after greater than a decade of campaigning by the NFU and different UK farming unions who had referred to as out unfair practices and abuses of energy within the dairy provide chain.
“Tomorrow [Wednesday, February 21, 2024], we’re laying new laws for the dairy sector, and we’re launching a overview of the poultry sector,” Sunak stated in his speech to the convention.
Proposals for the brand new laws had been lodged final summer season as particulars concerning the enforcement mechanism had been nonetheless being ironed out. On the time, NFU diary chair Michael Oakes informed us that ‘on too many events prior to now, farmers have taken a disproportionate share of the chance inside the provide chain, and it’s been very straightforward for processors to handle their threat or margin with the farmgate milk value. “The market will all the time set the worth, however a minimum of farmers will perceive what it’s that strikes their value,” he defined.
He added that he didn’t imagine there was a contract that was non-exclusive within the UK dairy provide chain on the time, which means {that a} farmer couldn’t legally increase their enterprise past that one purchaser. “Going ahead, if a processor doesn’t need any extra liters from you, so long as you don’t break your authentic contract, we don’t imagine try to be tied to at least one explicit purchaser,” he stated.
The British prime minister additionally stated in his speech that comparable contract laws for the pig sector will come later in 2024.
Sunak introduced that grants of round £427m will likely be made out there to farmers, together with £220m for expertise and productiveness schemes permitting entry to new tools reminiscent of automation gear to cut back the reliance on abroad staff.
Will increase to the administration funds for the Sustainable Farming Incentive had been additionally introduced.
Lastly, the UK authorities is about to publish an annual meals safety index, to seize and spotlight key knowledge wanted to watch how present ranges of meals safety are being maintained. This can occur on the subsequent Farm to Fork Summit in spring.
