European milk market ripe for tapping

By FWi staff

UK dairy farmers must be ready to negotiate with huge Continental retailers from a position of strength within a decade, says a European marketing consultant.

The biggest challenge facing milk producers is the ongoing concentration of the retail sector, warns Andrew Cookson, head of food and drink in the France-based company GIRA.

Speaking at a Federation of Milk Producers/NFU meeting in Devon this week, he said farmers could be supplying milk to huge companies based on the Continent within 10 years.

“You will need to be in a position to negotiate with them.”

Big co-ops, fully controlled by knowledgeable farmers, using professional managers, and with processing capacity, were the only way forward, he said.

“It is not possible to just sell milk. In the extreme, if youre having difficulties with processor-customers you can make milk into powder and export it.

“Ideally, you would have just two or three mega co-ops.

“Co-operation will not make you rich overnight. But it will enable you to compete throughout Europe.”