The UK farming unions have raised concerns with the government regarding possible changes to the new dairy contracts legislation.

The unions have written to food security minister Daniel Zeichner, requesting clarification on the Fair Dealing Obligations (Milk) Regulations 2024.

In the past, contracts have allowed milk buyers full control over pricing and exclusive rights to all milk produced on a farm.

A key feature of the new legislation aimed to break this control over both price and volume, giving dairy farmers the option to enter non-exclusive agreements.

This would allow them to sell some of their milk to other buyers when the primary purchaser does not require it.

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The unions believe the government is considering a change to allow a specific interpretation of tiered pricing, which includes bonuses and penalties tied to seasonal milk volumes.

However, the NFU, NFU Scotland, NFU Cymru, and Ulster Farmers' Union caution that this could allow milk buyers to discount certain volumes of a farm’s milk, even under exclusive contracts.

The UK farming unions stated: “[We] have always believed that the ability for milk buyers to control both price and volumes of milk on a dairy farm should be separated.

"We cannot see any reason why anyone would object to a farmer being free to market their excess milk to a third party should their primary purchaser be discounting it."

The Fair Dealing Obligations Regulations, shaped through consultation with the dairy industry, aim to ensure fair and transparent contracts by preventing one-sided contract changes.

It is believed that the potential changes concern exclusivity and the unintended effects of the tiered pricing provisions.

The unions added: “We share the minister's desire to improve fairness in the dairy supply chain, but these proposed changes would act against the best interests of dairy farmers.

"That is why we have written to him seeking further clarification and a proposed solution without delay.”