Dairy Crest Direct launches UK’s first DPO

Dairy Crest Direct (DCD), the independent organisation representing 1,050 farmers across England and South Wales supplying Dairy Crest, has announced the launch of the first EU and UK Government approved, Dairy Producer Organisation (DPO) in the UK.

The provision to establish DPO’s was passed into law by the EU Parliament and Council in December 2013. DCD’s evaluation of their move to become a DPO was funded through Defra’s Dairy Fund and their application to the RPA was approved earlier this year.

DPO status provides competition compliant authority and the bargaining strength to constituted farmer groups to negotiate contract terms and milk prices with their buyer on their members’ behalf. DCD DPO members will continue to receive the benefits provided by DCD representation over the past 11 years with the DPO status building on the existing services provided to all members.

The changes resulting from DCD’s DPO structure have now been integrated into new DCD DPO Member Agreements and into the new Dairy Crest Milk Producer Agreements together with amendments for full Voluntary Code compliance. DCD members will be invited to sign up to the new Agreements, and if accepted, will ensure that future pricing and contract options from July will be by negotiation, and not as at present, by discretion.

DCD Chairman, David Herdman says, “At a time when the UK dairy industry is facing considerable challenges, and when so many dairy farmers have no formal representation at all, I am determined to provide our members with a range of options to help in the management of their individual businesses. The legitimacy, accountability and rigour provided within a DPO structure helps to future proof effective farmer representation in a fast evolving marketplace”.

Farming Minister George Eustice says, “We want a competitive and resilient dairy industry which is why I congratulate Dairy Crest Direct on forming the first Dairy Producer Organisation in the UK. Working together, and supported by a £110,000 grant from Defra’s Dairy Fund, the farmers within Dairy Crest Direct will have greater power to negotiate the price of their milk and give themselves more clout in the market place.”