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<p>In order to support milk producers, we have temporarily eased some elements of
competition law to make it easier for the dairy industry to come together to maximise
production, processing and storage efficiency and ensure as much product as possible
can be processed into high quality dairy products. This approach will allow the market
for milk to adjust to the change in demand for milk while allowing production to be
restored when shops, restaurants and pubs are able to open again. Exempted activities
have been developed in conjunction with the dairy industry.</p><p> </p><p>Beyond this
immediate and temporary measure, the Government plans to launch a range of initiatives
to improve the position of milk producers. Government is keen to see greater levels
of collaboration between producers and will continue to support farmers who want to
harness the benefits of working together. Our Agriculture Bill includes powers to
introduce a new domestic system for recognising producer organisations, which will
be better tailored to the requirements of UK producers.</p><p> </p><p>The Bill also
includes powers to introduce and enforce statutory codes of practice to address unfair
trading practices which can occur between milk producers and purchasers. We will carry
out a full consultation on dairy contracts to take account of the range of stakeholder
views and hope to launch the consultation later this year.</p>
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