World's dairy businesses have much to be positive about

Dairy businesses around the globe should be in good heart because the long-term fundamentals are positive, according to Dairy UK.

Speaking at the opening of the International Dairy Federation’s (IDF) World Dairy Summit in Mexico this week, IDF President and Dairy UK Director General Jim Begg said the whole dairy industry was experiencing difficult conditions, but needed to keep its eyes on the prize.

Begg said: "This event comes at a time when the world economy is facing considerable difficulties. Dairy businesses are not immune to that.

"High oil prices have driven up feed and fertiliser costs, as well those for packaging and logistics. See-sawing commodity prices have played havoc with the dairy markets, leading to significant volatility.

"But we should be in good heart because the long-term fundamentals are positive.

"Our industry enjoys strong demand growth, driven by rising world incomes and a growing population. Consumers really enjoy our products, as much for the taste as for their role in a healthy and nutritious diet. And we have a very good track record in product innovation.

"We must ensure that industry sees through short term pressures because we undoubtedly have a very bright future in the longer term. The key to realising that future is to continue producing safe, healthy products that our customers want to buy."