The United Kingdom will draw up a code of conduct for the entire dairy chain. With this code of conduct, the British government hopes to combat unfair trading practices, such as the short-term adjustment of contracts between the buyer and the producers. "Hopefully dairy farmers can be competitive again soon," said Agriculture Minister Victoria Prentis.
At the beginning of this week, the British government announced its intention to draw up a code of conduct for the dairy chain. This code should help to ensure a fair dairy supply chain. "The imbalance in supply chain power would create uncertainty for many dairy farmers, for example when buyers have an opportunity to set or change the terms of a contract at short notice," the government said.
Set minimum standards
The code of conduct should also help dairy farmers to be more competitive. For example, minimum standards are set and the code should give companies the flexibility to adapt contracts to the individual circumstances of a farmer. "It is important to us that the contracts between producers and dairy processors are drawn up on fair terms. Only then can dairy farmers remain competitive," writes Agriculture Minister Prentis in a response to the proposal.
'Voluntary code of conduct does not work'
According to Lesley Griffiths, Secretary of State for the Environment, Energy and Rural Affairs, this legally established code of conduct is also necessary. "Many manufacturers within the sector have recently reported that customers do not always adhere to a previously established voluntary code of conduct. So if a code of conduct on a voluntary basis does not work, a legal code of conduct is the only remaining solution."
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