New legislation on dairy contracts has finally come into effect which is intended to stop contract changes being imposed without agreement.
The new legislation called the Fair Dealings Obligations (Milk) 2024 came into force on July 9 after more than a decade of campaigning due to unfair practices in the dairy supply chain.
This means all new milk contracts made from July 9 2024 need to be compliant with the regulations while any existing milk contracts now have a 12-month transition period before they must meet new legislation requirements by July 9 2025.
There will also be a system in place to enable farmers to verify the calculation of variable prices.
The new regulations also include an enforcement regime, that will be processed via the Agricultural Supply Chain Adjudicator.
Aberdeenshire dairy producer and NFU Scotland’s milk committee chair Bruce Mackie said the move was a “very positive step” for dairy producers across the UK.
“It has taken more than a decade of campaigning by NFU Scotland and the other UK farming unions to reach this point which we believe will be pivotal in securing fairness across the dairy supply chain and deliver for our members,” said Mr Mackie.
“I’d encourage anyone who is experiencing any issues or wishes some advice regarding new or existing dairy contracts to utilise the support that is available to them via the new Agricultural Supply Chain Adjudicator guidance online or by contacting the Scottish Dairy Hub.”
NFU Scotland is also pleased to have secured a meeting with the Agricultural Supply Chain Adjudicator (ASCA), Richard Thompson, at the end of July.
Coinciding with the new introduction of FDOM24, ASCA launched a series of online webpages providing guidance to help anyone lodge a complaint. On these pages you can find:
- More information about the ASCA and office, including contact details, what a farmer/producer can complain to them about, and what happens if doing so.
- A complaints form that needs to be filled in and submitted to make a relevant complaint.
- Statutory Guidance to FDOM24 covering matters that will be taken into account when deciding any civil penalty or compensation payable if there has been a breach of the Regulations, as well as rights to make representations during the complaints process, and the right to appeal to the First-tier tribunal if the claimant is unhappy with the outcome of their complaint.
- Additional Guidance to FDOM24.
These can be found at https://www.gov.uk/government/publications/the-agricultural-supply-chain-adjudicator-asca-making-a-complaint