Milk supply contract is Code of Best Practice compliant - Arla

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Arla Foods is claiming a UK first – a milk supply contract that is fully compliant with all the aspects of the Dairy Industry Voluntary Code of Best Practice on Contractual Relationships.

The Code, which was drawn up in September 2012 by the National Farmers Union (NFU), NFU Scotland and Dairy UK, is designed to give dairy farmers assurances that their contracts are not putting them at a disadvantage in the marketplace.

Arla’s new contract – Arla Direct – features a standard litre price of 30.02 pence per litre (ppl), a bonus for larger producers, liquid and compositional variations, seasonality options, and a 12 notice period.

“Since its launch in September, there has been plenty of debate around the Code and Arla is fulfilling its commitments by introducing what we believe is the first compliant milk supply contract. Initial relation from farmers has been extremely positive,” said Arla’s head of milk and member services, Ash Amirahmadi.

“In addition, we are also working to ensure that all of our farmer contracts are fully compliant with the Code.”