NFU dairy vision to spur the industry

The NFU has released a document aimed at providing new thinking and strategic directional change in the dairy industry.

'A vision for the dairy industry' outlines a number of key areas that must be urgently addressed in order to ensure a positive and profitable future for British dairying.

Included among those issues addressed:

· Transparency

· Competition policy

· Regulation

· Pricing models

· Adding value

· Milk supply contracts

NFU dairy board chairman Gwyn Jones said: "The industry has reached a watershed. CAP reform, trade liberalisation and a lack of confidence have created uncertainty in the domestic market and the future of our industry will owe much to the decisions it takes now. Our vision is of a dynamic, diverse, market driven, competitive and profitable industry.

"We haven't put forward a one-size-fits-all approach. We don't believe there is a singular strategy for the industry. But we do believe there are a number of issues that must be tackled together by different parts of the dairy industry. Supply chain competitiveness, market orientation and price stability have to be addressed jointly in an honest, objective and realistic way.

"Our industry is inherently strong and competitive. Our market size, potential for growth and efficiency at the farm gate are reason for optimism. But we need to harness those strengths in rethinking the way the entire industry is structured. Our document is not a prescription, but it is bold and offers ideas and concepts the industry separately and collectively needs to discuss."

NFU President Tim Bennett said: "This is an important and courageous document. The industry needs a vision that tackles head on the number of controversial but critical issues which it faces and this document is a challenge to all sides of the industry, including farmers. I urge the main players in the industry - retailers, milk processors and producers, as well as their representative organisations to give due and urgent consideration to this document and act upon it."

Mr Jones added: "A starting point for action on the back of our document is the system of raw milk contracts. The excellent piece of work launched by the MDC today is a comprehensive analysis of the problems with contracts and the principles going forward. Industry bodies should consider whether the introduction of a code of practice for raw milk contracts would improve the situation."