As we approach the 9 July and the enforcement of new dairy contract legislation, NFU chief dairy adviser Verity Richards provides an update on the regulations, how they've recently been amended and who to contact should you have any contractual concerns.
With the FDOM regulations (Fair Dealing Obligations (Milk) Regulations) set to come into force for all contracts on the 9 July, we are starting to see increased activity across the dairy supply chain with a number of processors either releasing compliant contracts or known to be receiving legal advice.
However, a large number of farmers are yet to hear from their buyer when it comes to discussing the future terms and conditions of their milk purchase contract.
We urge you to get in touch with your processor if you're unsure what steps they are taking to comply with the new regulations and to ensure there is time for constructive discussions.
The NFU also offers discounted legal checking services for individuals or groups of members, contact NFU CallFirst to be connected to a Legal Panel Firm.
Eagle eyed (or eared) members will have heard that, as part of the Fair Dealing Obligations for Pigs Statutory Instrument which has now been laid before Parliament, an amendment to the dairy regulations has been included:
In practise, this amendment means that tiered pricing (e.g. A+B contracts) can be used in exclusive contracts where the purchaser is a cooperative.
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