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The NFU is taken aback by proposed changes by Defra to the Fair Dealings Obligations (Milk) Regulations (FDOM24), aimed at creating fairer contracts for dairy farmers. These regulations, which came into effect on 9 July 2024, were designed to improve transparency and fairness in milk pricing and contracts. However, concerns have been raised about potential unintended consequences related to the tiered pricing provision in the regulations.

Under the FDOM24 regulations, milk purchase contracts can include different prices based on volume, such as two-tiered or seasonal payments, as long as producers are free to engage with other milk purchasers. This change is intended to prevent milk buyers from taking advantage of exclusive contracts and discretionary pricing at the expense of dairy farmers.

NFU Dairy Board chairman Paul Tompkins has voiced concerns about potential amendments that could undermine dairy farmers’ ability to access alternative markets, particularly during seasonal price adjustments. He emphasized the importance of farmers having the option to sell some of their milk elsewhere, especially when facing discounted pricing from their primary processor.

Mr. Tompkins warned against diluting these regulations, as it could create a dangerous precedent that allows processors to exploit their power over farmers. The NFU is seeking urgent clarification from Defra on the proposed changes to ensure that dairy farmers are protected from unfair practices.

In response to these developments, the NFU is organizing regional roadshows on dairy contracts to help farmers understand the impact of the new legislation on their businesses. Interested individuals can find more information and register for the roadshows on the NFU Online website.

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