EFRA report on farmgate pricing – a dairy perspective

Published 2 March 16

Following its investigation on measures needed to improve prospects for the agriculture industry in the UK, the Environment, Food and Rural Affairs (EFRA) Committee has published a report detailing its recommendations and conclusions.

The report covers both the dairy and red meat sectors, but the key recommendations applicable to the dairy industry related to areas which have the potential to improve stability within farmers’ incomes.

It also highlighted the need for the industry to build new markets, either through investment in value-added or opening new export markets. This would require the whole supply chain to remain competitive through improvements in productivity and product development.

It recognised that for this to occur, farmers required more predictable income streams. This led to recommendations for more use of Producer Organisations to enhance negotiating power and the use of risk management tools such as futures and long-term contracts to reduce price uncertainty.

Other recommendations included more transparent pricing practices by retailers, improved guidelines for country of origin labelling, the extension of the Groceries Code Adjudicator’s remit to cover indirect suppliers and improvements in the speed of payments by the RPA.

The full report can be found on the EFRA website.