Dairy processors need vision and innovation
THE CHAIRMAN of the NFU”s national milk board has accused UK dairy processors of lacking vision and innovation.
Gwyn Jones told NFU Council delegates on Tuesday (Apr 12) that it was clear to him that processors were not as dynamic as the retailers.
“I do begin to wonder where the vision, where the strategy is in processing in this country. I would question the management in some areas,” he said.
“I think there are serious questions we need to start asking ourselves and others. It could even be that in time producers may decide that in one or two cases an independent audit may be in order to try to assess what is going on.”
Mr Jones said there was a trade gap which needed addressing by the industry. The value of a tonne of dairy product imported into the UK was about 1500, but every tonne of product that left the country was valued at about 900, he said.
“It is a huge concern to me. It shows quite clearly our lack of innovation, lack of vision and our failure to compete successfully. If we are saying with our costs of production in this country that commodities are really not for us, then we have to do something about this trade gap.”
Mr Jones said the processors were guilty of talking prices down and they seemed to be looking at a half-empty glass most of the time. “This is something that needs to be addressed. They are not nearly as dynamic and brave as producers when facing this new world and it is some<00AD>thing we need to do something about.
“While they can protect their margins fairly easily at our expense, that is not going to change. So we need to look at ways of making sure that is not the way for the future.”
Mr Jones said that, sad as it was, he was prepared to see foreign investors come to the UK if they were prepared to do the job farmers wanted from processors.
He was backed up by union president Tim Bennett, who said: “If people in this country can”t face up to this [challenge], then we will chase people who can develop new products.”