In responding to the current situation, industry needs to address both the immediate issue of the price paid for milk and also the structures and mechanisms that will help underpin the long term viability of the sector.
Meeting tonight ahead of the Royal Welsh Show, Agriculture Ministers Jim Paice, Alun Davies and Richard Lochhead agreed that:
- A code of practice on milk contracts is in the interest of the whole industry at this stage; Ministers urge the industry to reach rapid agreement, with effectiveness of the code to be subject to review within a year;
- Jim Paice will raise within UK Government the possibility of a role for the Grocery Code Adjudicator in providing a means of arbitration for any code;
- Producer Organisations are key to addressing the current imbalance in the market place in the longer term.
The next meeting between processors and producers on the code of practice is due to take place at the Royal Welsh Show on Monday 23 July 2012.