Dairy farmers told to focus on high value exports
Dairy farmers should choose a progressive and globally competitive milk buyer to make the most of growth opportunities abroad, says DairyCo.
Growing exports of high value-added products held greater potential for the UK dairy industry than trying to compete on the volume commodity market, said DairyCo senior analyst Patty Clayton, speaking at the AgriScot event on Wednesday (20 November).
The EU and Russia were among markets with good potential for added value products, said Mrs Clayton, whereas China’s demand for large volumes was not compatible with the UK’s processing capacity.
“Farmers should make sure they are aligned to milk buyers who are forward thinking and able to compete globally, said Mrs Clayton who advised farmers to ask their milk buyer what they were doing to position themselves and make sure they were happy with its direction
Success for growth would depend on the ability to compete as a global player, which would be based on the relationship between milk buyers and farmers and the ability of farmers to supply milk efficiently and at competitive prices.
Two key product types which offered growth potential were identified – the premium consumer market and the premium ingredients market. Products in these categories serve a particular use, such as health benefits for consumers or convenience for food processors and caterers.
Mrs Clayton identified large growth potential for whey protein powders in the EU, and said demand for dairy products in Russia was growing as its supply base struggled to meet this. She said China was a popular market, but the current successful players had been developing a strategic presence there for years.
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