Dairy UK launches white paper

The dairy industry needs to take responsibility for its own development if it is to prosper and become more profitable, according to trade association Dairy UK.

Launching the organisation’s white paper on the future of the industry at its annual conference in Birmingham on Monday (5 September), Dairy UK director general Jim Begg said farmers could not rely on government to make changes to the industry.

He said dairy producers needed to be prepared for a future of deregulation where they were responsible for their own activity and that innovation, consolidation and efficiency would be key drivers in the industry’s future growth.

Setting out key areas for the industry to focus on in the coming years, Mr Begg said the government could help by providing evidence-based advice to the industry and support changes in production practices.

But he warned strong supply chain cooperation would be key to helping dairy farmers exploit the opportunities available.

“Pressure on consumer spending due to the recession has slowed down price rises in the UK, while farmers have suffered a significant rise in input costs,” he said.

“These have had a clear impact on farmer confidence, but while the challenges the industry faces are formidable, they are by no means insurmountable.

“The UK industry is happy to take on responsibility for its own future.”

Mr Begg said price volatility in world milk markets was likely to continue for the foreseeable future, but reform of the CAP and possibilities of the European Commission’s proposed dairy package would bring new possibilities.

“The industry has to be fully alert to consumer scrutiny over its production practices, approaches to welfare and environmental activity,” he added. “It’s vital the industry remains consumer driven.”

Read Dairy UK’s white paper here.