Voluntary Dairy Code of Practice must be given time to work
Ceredigion’s Welsh Liberal Democrat MP Mark Williams, a member of the Welsh Affairs Select Committee, has welcomed today’s publication of the Committee’s Report entitled ‘The Voluntary Code of Practice in the dairy sector’.
The Report states that the voluntary code must be allowed to work, but if the dairy industry does not see any improvements, the Government must be prepared to legislate in order to protect the dairy industry in Wales.
The Committee undertook the Inquiry following the milk price crisis last Summer, and has taken evidence from the farming industry, the milk industry, retailers, and various representatives including the Ministers responsible for farming in both the Westminster Government and the Welsh Assembly.
Key suggestions from the Committee are:
- The new voluntary code of practice is an important step forward to redress the balance in the contractual relationship between dairy producer and purchaser. The Committee urges all dairy processors who have not yet signed the voluntary code to do so.
- The code must be given time to work. The UK Government should set out precisely when and how it intends to measure the success or failure of the voluntary code.
- Should the voluntary code fail in its objectives, the UK Government must legislate for a statutory code of contracts in the dairy industry. The Committee prefers such a measure to be taken in co-operation with the Welsh Government, in the spirit of the joint working that has taken place since the summer 2012 crisis.
Commenting, Mark Williams said:
‘The dairy industry is incredibly important to Wales, accounting for one third of the value of our agricultural production and employing thousands of people, which is why the milk price crisis last Summer was so worrying.
‘I was delighted that during the evidence sessions for the Inquiry the Committee came to Aberystwyth and heard firsthand about the experiences of dairy farmers in my constituency. Whilst the code is not perfect, this is a step in the right direction, and I am pleased that a voluntary solution to the problem has been sought. I would therefore urge all dairy processors to sign up in order that we can see improvements sooner rather than later, and there is no need to resort to legislating on this issue.’