New scheme launched for English dairy farmers to form producer organisations

UK Farming Minister David Heath has launched a new scheme to allow English dairy farmers to collaborate and form producer organisations, a move which will enable them to have more influence in the marketplace.

The plans will allow dairy farmers to join forces to offer their combined milk to processing companies, instead of negotiating as individuals.

Heath has also launched a separate scheme which will enable dairy farmers in England to apply for £5m worth of grants to tap market opportunities through collaboration.

The £5m fund, which is being provided through the Rural Development Programme for England, will allow farmers to apply for a minimum grant of £25,000.

The funding could be used to set up new cooperation structures, such as producer groups and cooperatives, and implement technology to take advantage of new market opportunities.

Earlier this year, the UK government helped the industry secure an agreement on a voluntary code of practice, which ensures that future contracts between farmers and dairy processors will be freely negotiated for greater transparency.

The formation of producer organisations and a voluntary code of practice will allow dairy farmers to have more influence over contractual terms, conditions and prices.

Heath said that the dairy industry in England has the potential to expand, and better collaboration is the key to achieving this.

"We’ve already got the industry code of practice, and negotiating as groups rather than individuals will give dairy farmers an even louder voice to get their just rewards from the marketplace," Heath added.

Heath visited the Isle of Wight Dairy Group, which has utilised the funding from the Rural Development Programme for England to establish a new farm cooperative.

The cooperative, which is the first of its kind in England, features 17 dairy farmers in the Isle of Wight who will produce and market Isle of Wight branded milk to around 30 retailers in the county, including supermarkets and local shops.

The initiative to form producer organisations in England is part of an effort to implement the European Union’s Dairy Package, a new set of laws which are aimed at strengthening the dairy industry in Europe.