Cooperative Opportunity Announced For Louder 'Farmer Voice'
UK – The government has announced a new opportunity for farmers to strengthen bargaining power through cooperatives.
4 April 2013
1 minute read
The change will come into effect on April 8, Farm Minister, David Heath announced yesterday.
English dairy farmers will be able to join forces in new cooperatives, pooling their produce for sale to processing companies. The change will give farmers more power to influence contract terms, conditions and prices than they might have had if negotiating as individuals.
Farming Minister, David Heath said:“Dairy farmers will now have a louder voice in the market place to negotiate on contractual terms and conditions as well as prices. Better collaboration will give the industry the platform it needs to fulfil its potential.
“Now it’s up to farmers and processors to work together to re-shape the industry and take advantage of all opportunities that exist.”
Producer organisations, which are already widespread in other European countries, could cover up to a third of UK production.
In July 2013, the Government helped to secure the industry’s agreement of a voluntary Code of Practice on contracts between farmers and dairy processors.
Under the Code, contracts are freely negotiated, fairer and more transparent and farmers have the ability to leave contracts more easily if they are unhappy with the price they receive.
The Rural Payments Agency will take applications from dairy farmers who want to form producer organisations from Monday 8 April.
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