'Massive growth potential' signals great future for UK dairy

The UK dairy industry needs to place its ‘massive potential for growth’ at the heart of its strategy for the future, Bill Keane, chairman of Dairy UK has said.

Addressing political and industry leaders at the Dairy UK annual dinner in London, Mr Keane said: “Around the world we can expect growth in demand for our products higher than most countries can for their whole economies.

“As economies develop, populations rise. The process of urbanisation will continue in developing countries so we can expect the demand for our products to rise. That is a pretty good situation to be in and it presents great opportunities. We have massive potential for growth.”

He said the industry could take ‘great pride’ in its achievements and can go from strength to strength.

“We should not for a moment underestimate the challenges that face our industry. Like other sectors we have tough decisions ahead of us as we try to create profitability throughout the supply chain.

“That said, our customers – and I mean our consumers – love our products. I think we would all do well to remember that. Britain loves dairy. We have done for centuries and dairy is part of the fabric of the nation. Not only do our consumers love it, the story is the same all over the world."

Recently Aled Jones, NFU Cymru Milk Board Chairman told dairy farmers in Monmouthshire: "For far too long we as dairy farmers have suffered the lows in the market and never receive the rewards when the markets are at a high. We are in a situation now again where there is insatiable and growing demand for dairy products globally. Dairy farmers like the rest of the supply chain should be able to benefit and capitalise from this."

"If we as an industry want to stand a chance we have to stand together – with a voluntary code that is adopted and implemented properly we would be far stronger to drive the industry forward.

Keane said Dairy UK was committed to a strategy of ‘getting it right’ and this included:-

• Governments freeing up markets, minimising red tape and incentivising added value.

• Businesses striving for competitiveness.

• Anticipating change, managing volatility, promoting and protecting the integrity of dairy products.

“One year ago, we were approaching a summer of real discontent. Today, I think the outlook is very different. Sure the milk prices have gone up, and that’s made a massive difference but so have the input costs.

“I’m not in any way underestimating the impact that the weather has had on our milk production levels but in general there is significantly more promise in the industry than there was a year ago.

“That tells me that the industry, working hand in hand with the Government, has laboured hard to address what was a very difficult situation for everyone.


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