The Government response to the consultation into the remit of the Grocery Code Adjudicator (GCA), published in February 2018, included the proposed measure of “introducing compulsory milk contracts between producers and purchasers to help protect dairy farmers by setting out clear terms, including the price for the delivery of milk, the timing of deliveries, the duration of the contract, details of payment procedures, and arrangements for collecting and delivering raw milk”.

Consultation on that proposal is now expected in 2019 and the four UK farming unions are urging all dairy farmers to engage and speak up for a more effective dairy supply chain, with fairer terms for farmers. The Unions have reiterated their support for regulated contract terms and we will be extensively consulting with our members when the consultation is issued, in an effort to rebalance where the risk currently sits within the dairy supply chain.

Support for dairy farmers

In a joint statement, NFUS said: “For too long, dairy farmers have shouldered too much of the risk in the dairy market and in many cases have been subject to unfair contract terms and trading practices. As outlined in the GCA review, there is clearly an imbalance of power within the dairy supply chain.

“As we await the Government’s consultation on dairy contracts to be issued, we are using this time to consult with our members. We want to understand their views on dairy contracts and our final responses to that consultation will reflect our members’ views. We are all keen to constructively engage with industry and Government to deliver the improvements we all want to see.

“Together, we want to see flexible and innovative regulation that delivers fair terms for farmers and an equitable balancing of risk between farmers and buyers.

“As we leave the EU, the UK dairy market needs to be fit for purpose - commercially focused, innovative and competitive. It is vital that we have a properly operating dairy market where risk is shared across the supply chain. Dairy farmers need to be in a strong position to develop professional and sustainable relationships with their buyers, while operating to fair trading terms.”

New affinity partnership

NFU Scotland’s latest affinity partnership is with SsangYong, Korea’s only SUV and 4x4 specialist manufacturer, negotiating significant discounts. Savings can now be made on the new Musso, launched in July this year, and built on the same architecture as the new Rexton – which has already been awarded ‘4x4 of the Year 2018’ by 4x4 Magazine.

Questions on Brexit

Within the January edition of our membership magazine, the Scottish Farming Leader, we will be answering all members Brexit questions. If you have a burning question – and remember there are no stupid questions – then please email them through to brexit@nfus.org.uk and we’ll have them answered for you.

Sainsbury’s and ASDA merger

NFU Scotland gave evidence in Edinburgh as part of the enquiry into the possible merger between ASDA and Sainsbury’s. At the session NFU Scotland said that if the merger was allowed then seven companies would likely have control over 90% of the grocery market. NFU Scotland said that protections must be in place to prevent unfair trading practices.

Scottish Suckler Beef Support Scheme deadline

Members are reminded that the deadline for the Scottish Suckler Beef Support Scheme is 31 December 2018. The scheme has an annual budget of €38m for beef calves born on the Scottish mainland and €6.6m for claims from the Scottish islands.