Context
A constituent of the MP, a dairy farmer, has been notified of a 2p per litre cut in milk price, equating to a loss of £11,000. This makes it unviable for him to continue farming due to unfair dealings from milk processors.
Question
Despite the agricultural supply chain adjudicator having a remit over fair dealings for milk prices, it appears that contracts are essentially a one-way street, with milk processors dictating prices. A constituent of mine, a dairy farmer, has recently been notified of a 2p per litre cut, which equates to a loss of £11,000 and makes it unviable for him to continue. What steps is the Minister taking to urgently redress that imbalance? Farmers are scared to speak out because it will have an impact on their contract.
Answer from The Minister for Food Security and Rural Affairs (Dame Angela Eagle)
A global glut of milk is driving prices down; prices had gone up because there was an undersupply, so there are market corrections going on. The Fair Dealing Obligations (Milk) Regulations 2024 now apply to all dairy supply contracts. If her constituent feels that he is being unfairly dealt with, he can contact the agricultural supply chain adjudicator, who was appointed to carry out enforcement of the fair dealing obligation regulations. He can now do so because those regulations have been in place since July of this year.
Not addressed: Did not provide any specific actions or timeline for addressing the immediate financial crisis faced by dairy farmers due to price cuts.
Was this summary accurate? Tell us
How accurate was this summary? (1 = poor, 5 = spot on)