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Arla proposes changes to ensure farmers serve 12-month notice periods

Arla farmers have been urged to make sure they are engaged with their representatives as Arla looks to ‘put the handcuffs’ on farmers wishing to terminate their contracts at short notice.


Alex   Black

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Alex   Black
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Arla members urged to engage in notice debate #teamdairy

The UKAF has put forward proposals to remove a clause allowing members to pay to terminate their contracts at short notice so farmers are bound to serve 12 months’ notice.

 

It said the changes would help secure their milk supply and prevent members having to ’bear the burden’ of high third party milk price costs when other members leave.

 

Engage

 

NFU dairy board chairman Michael Oakes told members to make sure they were engaged with the debate to ‘make sure they get what they want’.

 

“Rather than putting the handcuffs on, they need to look at the competitiveness of their milk price,” he said.

 

“If the price they paid was competitive, why would any farmer want to pay to leave?”

 

He added Arla needed to look at its pricing model going forward. As it operates with one price across Europe, prices were also dependent on the market situation across Europe, not just in the UK.


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UKAF reasons for the proposals

  • To support the owner strategy transitional arrangements through aligning the UK owner farmers with the 12 month notice period of Arla members in our other markets
  • Additional business wins emphasises the need to have a secure milk supply to meet our customer requirements
  • Existing Arla members should not bear the burden for other members who leave at short notice exposing them to high third party milk price costs

The UKAF Council meeting is at 12pm on July 20 where elected representatives will vote on the resolution.

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