British Prime Minister Rishi Sunak announced new dairy and poultry regulations during a speech at the National Farmers’ Union (NFU) conference. The regulations seek to establish transparency and accountability throughout the dairy supply chain by prohibiting contract changes without agreement and addressing issues of exclusivity and notice periods. They plan to introduce clearer pricing terms and a system for farmers to verify variable price calculations.
The legislation will include an enforcement mechanism, with the secretary of state empowered to impose significant financial penalties on those who violate the rules. The news follows more than a decade of campaigning by the NFU and other UK farming unions to expose unfair practices and abuses of power in the dairy supply chain.
Proposals for the new legislation were submitted last summer, while details about the enforcement mechanism were still being worked out. NFU diary chair Michael Oakes explained that farmers should understand what influences their prices, and that there were no non-exclusive contracts in the UK dairy supply chain at the time. Similar contract regulations for the pig sector will be introduced later in 2024.
Sunak announced grants totaling approximately £427 million for farmers, including £220 million for technology and productivity programs that provide access to new equipment such as automation gear to reduce reliance on foreign workers. Increases in management payments for the Sustainable Farming Incentive were also announced.
Finally, at the next Farm to Fork Summit in the spring, the UK government plans to release an annual food security index that will capture and highlight key data required to monitor current levels of food security.
