UK: regulations to ensure fair and transparent supply contracts in the dairy sector

In the United Kingdom the government has outlined details on regulations set to come into force later this year which will ensure supply contracts in the dairy sector are fair and transparent, with farmers being paid a fair price for their produce. The regulations form part of the government’s wider strategy to grow a thriving British food and drink sector which will put more British produce on supermarket shelves in the UK and around the world. The regulations will mean: Farmers have clearer pricing terms, with contracts setting out the factors which generate the milk price and allowing farmers to challenge prices if they feel this process is not being followed. Changes to contracts cannot be imposed on farmers without their agreement. Farmers’ contracts will all include a straightforward way to raise concerns about their contracts, promoting accountability and timely issue resolution. There will be clear rules put in place on notice periods and contractual exclusivity, protecting the rights of both buyers and sellers. An enforcement mechanism is created to guarantee the regulations are followed.

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