Dairy
Milk supply contracts

In the European Union, milk supply contracts are regulated by Article 148 of Regulation 1308/2013 – Establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007, which permits member states to create a requirement for the supply of milk from a farmer to a raw milk processor to be backed by a written contract, or to ensure that the first purchaser of milk to make a written offer to the farmer, although in this case the farmer may not be required to enter into a contract.

Thirteen EU member states including France and Spain have introduced laws on compulsory or mandatory written milk contracts (MWC's) between farmers and processors. The Scottish Government published an analysis of the dairy supply chain and the application of mandatory written contracts across the European Union in 2019, to evaluate the impact of the contracts where they have been adopted. In the UK, a voluntary code of best practice on contractual relationships in the dairy sector was agreed by industry during 2012: this set out minimum standards of good practice for contracts between producers and purchasers. During 2020 the UK government has undertaken a consultation exercise to determine which contractual measures, if any, would improve the resilience of the dairy industry for the future.

The Australian government has also introduced a mandatory dairy code of conduct.
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