By FWi staff

ADDING value to milk is the key to securing a profitable future for both dairy processors and farmers, says the Dairy Industry Federations president, John Houliston.

He told industry leaders at the DIFs annual lunch in London this week that the UK dairy industry had the potential to be the best in Europe.

It has an ideal climate for producing milk – and efficient dairy farmers.

“We also have a processing sector with technically advanced capacity and a highly developed distribution infrastructure for fresh dairy products.”

He outlined three areas the industry needed to address if it were to progress.

The processing sector must continue the “painful process of consolidation” and restructuring so that over-capacity was shed.

On developing higher margins and profits, he said a concerted effort must be made to build sustainable brands and redirect raw milk to higher value markets.

Mr Houliston also reinforced the DIFs support for radical reform of the CAP over a realistic time-frame and the abolition of milk quotas with compensation.