WIREDGOV

The regulations, which came into force earlier this year, permit producers to establish Producer Organisations, or less formal groups, to help negotiate contracts for milk supply between dairy farmers and buyers. The regulations also provide options to formalise milk supply contracts, along with a simplified approach to monthly reporting by milk processors.

Deputy Minister for Agriculture and European Programmes, Alun Davies, said: 

“While Member States have the option to make it compulsory for the industry to have written contracts of milk supply, the Welsh Government has supported the development of a voluntary code of practice that is owned, agreed and governed by the industry itself.”

Mr Davies has made his support for the voluntary code clear. He has also warned that should the voluntary code fail to deliver the contractual improvements intended, he will not hesitate to introduce legislation aimed at achieving the same goals.

He said:

“We need to be clear about the possible impact for the dairy industry of Producer Organisations, as well as the provisions for written milk supply contracts.

“The dairy industry is of key importance to Wales and I am committed to doing all I can to ensure that the sector emerges from its current difficulties in a strong position for the future."

Mr Davies encouraged all interested parties to put forward their views by 21 January 2013.

Related