First GB Dairy Producer Organisation draws in over 1,000 farmers

Published 29 July 15

The successful launch of the Britain’s first dairy Producer Organisation (PO) by Dairy Crest Direct (DCD) has the potential to improve the bargaining power of its members in the supply chain. Almost all of DCD’s 1,050 members have now signed up to the new PO, which has the authority to legally negotiate prices and contract options on their behalf. As the PO represents the combined milk pool of all of its members, it is likely to have a stronger voice at the bargaining table. Changes to members’ milk supply contracts, including prices, will now be agreed through negotiation rather than at the buyers’ discretion.

An NFU guide on the role of Producer Organisations in the dairy sector can be found here.