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 modifications being imposed with out settlement’ – thus fixing points round exclusivity and spot intervals – and introduce clearer pricing phrases and a system that farmers can use to confirm the calculation of variable costs.
The laws may have an enforcement mechanism, with the secretary of state granted the powers to impose ‘substantial monetary penalties’ to those that had breached the foundations.
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 evaluate of the poultry sector,” Sunak stated in his speech to the convention.
Proposals for the brand new laws have been lodged final summer season as particulars concerning the enforcement mechanism have been nonetheless being ironed out. On the time, NFU diary chair Michael Oakes informed us that ‘on too many events up to now, farmers have taken a disproportionate share of the danger inside the provide chain, and it’s been very straightforward for processors to handle their threat or margin with the farmgate milk worth. “The market will at all times set the value, however at the very least farmers will perceive what it’s that strikes their worth,” he defined.
He added that he didn’t consider there was a contract that was non-exclusive within the UK dairy provide chain on the time, that means {that a} farmer couldn’t legally develop 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 unique contract, we don’t consider try to be tied to at least one explicit purchaser,” he stated.
The British prime minister additionally stated in his speech that related contract laws for the pig sector will come later in 2024.
Sunak introduced that grants of round £427m might be made out there to farmers, together with £220m for know-how and productiveness schemes permitting entry to new tools reminiscent of automation gear to scale back the reliance on abroad employees.
Will increase to the administration funds for the Sustainable Farming Incentive have been additionally introduced.
Lastly, the UK authorities is about to publish an annual meals safety index, to seize and spotlight key knowledge wanted to observe how present ranges of meals safety are being maintained. It will occur on the subsequent Farm to Fork Summit in spring.
