Dairy farmers are raising serious concerns over contract practices as the sector approaches key legal deadlines under regulations which came into force last year.
Issues around short notice periods, lack of transparency, and fear of reprisals were highlighted at a stakeholder roundtable hosted by the Agricultural Supply Chain Adjudicator (ASCA).
The meeting brought together dairy industry representatives to assess progress ahead of the final compliance deadline on 9 July 2025.
The Fair Dealings Obligations (Milk) Regulations 2024, which came into force for all new contracts last July, require milk contracts between producers and processors to meet standards of fairness and clarity.
ASCA, established under the Agriculture Act 2020, is responsible for enforcing these rules and future fair dealing regulations across the supply chain.
While some processors have proactively worked with producer groups and farming organisations to bring contracts in line with the new requirements, frustration remains within the sector.
NFU Dairy Adviser Amy Mepham said: “It has been disappointing to see some processors providing producers with very short notice periods to review and sign their new contracts.
“In some cases, producers have been given a matter of days to review, receive legal advice and negotiate milk contracts or risk being put on notice.
“Given the length of time the sector has known that regulation is coming down the line – and the additional 12 months provided for current contracts to become compliant – it is frustrating that so many processors have left it so late to issue compliant contracts.”
The NFU has also raised concerns about complex and opaque pricing mechanisms included in some contracts, leading to confusion and undermining trust among producers.
The issue has also revealed a deeper challenge: a widespread fear of retaliation among dairy farmers, particularly in regions with limited processor options.
This climate of apprehension has reportedly made some producers reluctant to speak out, even when presented with unfair terms.
The NFU said it would continue to offer support to members, including legal assistance and contract checking services, and would remain in close contact with ASCA to ensure proper enforcement of the regulations.
Farmers who have yet to receive updated contracts or have concerns about their current arrangements are encouraged to contact their processor directly.
Those uncomfortable doing so may reach out confidentially to ASCA via: ASCA-in-confidence@defra.gov.uk.
The adjudicator has stressed that hearing directly from producers remains a top priority.
