Welsh dairy producers urged to pay more attention to contracts

Milk producers attending the Welsh Dairy Show have been urged to pay more attention to the contracts they sign with companies that buy their raw milk.

Though recent price increases generated an air of optimism at the event, farming unions and consultants warned that fast rising costs would hit profitability.

‘Farmers have never been in a better position to focus on getting a better contract’ – Dai Davies

Dai Davies, NFU Cymru president, said buyers were looking for milk and producers should be focussing on flexibility and a fixed price that could not be changed at a whim.

“It is vital that milk producers fully understand the liabilities and obligations their contracts compel them to undertake, especially when they sign a new contract,” Mr Davies claimed.

The NFU had developed a standard form of contract, which would be published on Friday 16 November. The purpose was to give greater clarity to certain provisions commonly contained in raw milk contracts.

But, Mr Davies reminded members that the onus was on them to study all the provisions of any legally binding contract and seek professional and independent advice to clear up any doubts.