NFU believes that this is a positive step for farmers.
NFU dairy board chairman, Mansel Raymond said: “This is an important and positive step for Arla Amba’s UK dairy business. It is vital that the Arla shows strong leadership and a commitment to equitable contractual relations with farmers suppliers.
“Much now rests on the discussions that are set to take place in the spring with farmer representatives in Arla Milk Link and Arla Foods Milk Partnership. Within the Dairy Contract Code, there are specific exemptions for potential and existing co-operative members, for instance the right to terminate a contract on three months’ notice does not apply.
“The NFU firmly believe that producers should be offered the freedom of choice between the commitment and longer term benefits of being a co-operative member or a direct supply relationship, as defined by this important new contract.
“The NFU is committed to achieving better and more balanced contracts for its dairy farmer members. We congratulate Arla on taking this important first step and urge all other milk buyers to fundamentally review their milk supply contracts to ensure full compliance with the Dairy Contract Code.”
Source: NFU
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