Dairy Confidence & Clear Cut Contracts

UK - According to a recent survey dairy farmers should be given clear cut contracts in order to restore some confidence back into the sector and give farmers reason to invest in their business.
calendar icon 2 May 2008
clock icon 1 minute read
National Farmers Union

The National Farmers Union say that the results of the fifth DairyCo Farmer Intentions Survey highlight errors in the current contract set up.

NFU Dairy Board chairman Gwyn Jones said higher prices in the latter part of 2007 and at the start of this year had given some encouragement for farmers to invest, but the survey showed general confidence levels were still quite fragile.

"While the survey shows a more positive outlook for British dairy farming than at any time in recent years, the slightest hint of a drop in the milk price would tip that balance in an instant.

"This is where the need for proper contracts is self-evident. Repairing the weak link in the chain to protect farmers from the volatility of commodity markets and provide stability and transparency is crucial if famers are to have the confidence to invest in their businesses and stay in dairying long term.

"With milk in short supply, and buyers falling over themselves to secure their supply base, farmers are in a much stronger negotiating position and must take full advantage of this opportunity to put in place a proper contract."

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