Supply chain adjudicator seeks dairy farmer feedback

Dairy producers are being encouraged to share their views on milk pricing and supply chain relationships with Defra’s agricultural supply chain adjudicator.

A sharp fall in farmgate milk prices in recent months, driven by large global milk supplies, has prompted the adjudicator to look at the relationship between producers and processors.

The adjudicator has launched an online survey to hear directly from dairy farmers, which will remain open until 20 April.

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Richard Thompson, appointed agricultural supply chain adjudicator in 2024, is responsible for promoting fairness, transparency and good practice across supply chains, as well as enforcing the Fair Dealings Obligations (Milk) Regulations on behalf of Defra.

While the regulations do not set milk prices, Mr Thompson emphasised that they do require milk purchasers to apply price changes fairly, transparently and in line with their contracts.

He added: “I look forward to reviewing the results and using the insights to help support fair and transparent relationships across the milk supply chain.”

The call for information was welcomed by the NFU, which has been made aware of a number of issues related to dairy contracts in recent months.

These have included concerns over whether price changes have been applied in line with contractual agreements, additional supply restrictions being imposed on producers, and changes to tiered pricing structures.

NFU Dairy Board chairman Ian Harvey said: “It’s encouraging for all UK dairy farmers that the adjudicator is taking an active role in investigating non-compliance in our sector and seeking to address power imbalances across the dairy supply chain. 

“While farmgate milk prices find themselves in a slump at this current time, we know that the long-term outlook for milk markets globally shows that demand for dairy will continue to rise.

“The UK dairy sector and processing capacity must be in a strong position to meet this demand. It is vital that, when we do start to see an upturn in dairy markets, farmgate prices also match the speed of market recovery.”