EUROPEAN UNION DAIRY PACKAGE AND MILK CONTRACTS

That this House welcomes the European Union Dairy Package and believes that it establishes clear and sensible rules for price determination in milk contracts for farmers supplying a dairy other than a co-operative; expresses concern that explicit provisions for minimum terms in contracts are left to member states to choose to implement and that the UK proposes a voluntary code; notes that farmers are often adversely affected by poor contracts and may be required to give 12 or more months' notice for requirement to leave but that the price the farmer is paid can be changed at will by the processor without notice; further notes that the price of dairy products has soared on world markets whilst the prices paid to dairy farmers in Wales have stagnated; believes that Government action is required to elimate unreasonable contractual practices and create fairer and more balanced contractual terms; and calls for implementation of statutory legislation on this matter in forthcoming groceries and milk ombudsman legislation.