Dairy farmers will have more power to get a good deal in the marketplace under changes coming into effect on Monday.
Farming Minister David Heath announced yesterday they would be able to join forces more easily in new co-operatives, pooling their produce for sale to processing companies.
The change will give farmers more power to influence contract terms, conditions and prices than they might have had if negotiating as individuals – a problem dating back 19 years to the abolition of the Milk Marketing Board.
Mr Heath, Lib Dem MP for Somerton and Frome, said: "Dairy farmers will now have a louder voice to negotiate on contractual terms and conditions as well as prices. Better collaboration will give the industry the platform it needs to fulfil its potential. Now it's up to farmers and processors to work together to re-shape the industry and take advantage of all opportunities that exist."
Producer organisations, which are already widespread in other European countries, could cover up to a third of domestic production.
The Rural Payments Agency will take applications from dairy farmers who want to form producer organisations from next Monday.
