NFU unveils dairy industry 'vision' at Livestock

Equitable contracts that reward farmers for investment and high quality output must be the foundation for a growing, profitable dairy industry, according to a new NFU dairy strategy.

Launched at the Livestock event at the NEC today, the strategy ‘Compete to Grow’ predicts a bright future for the British dairy industry, if opportunities for dairy market growth equivalent to an additional four to five billion litres are seized.

Among them, there are challenges for the NFU, Defra, Dairy Co and Dairy UK to work together in order to create the right environment for British dairy farmers and the dairy supply chain to thrive.

NFU dairy board chairman Mansel Raymond said: “The future presents a number of opportunities to British dairy farmers who are prepared to look to the future and invest. Population growth and consumption trends suggest the global and domestic dairy market will grow.

“Growth at farm gate can only happen in conjunction with increased processing capacity. While much has been said about investment in liquid milk processing, growth will also require more state-of-the-art processing capacity for other dairy products.

“With this vision and strategy I want to unite the industry in increasing our domestic production and processing. Farmers and processors need confidence in each other’s will and ability to invest and produce what the market wants and seize these opportunities.

“We believe that to trade globally, you need to compete globally; that’s the basis for ‘Compete to Grow’ our vision and strategy for a growing British dairy industry.”

In May, NFU Cymru Milk Board Chairman, Aled Jones told farmers in Monmouthshire: "The time has passed for excuses and we should now be at the stage where all milk buyers have properly implemented the voluntary code."

Dairy farmers had the opportunity to express their concerns regarding the uptake of the voluntary code by processors and raise contract issues at the meeting, which was held on a farm near Chepstow.

Aled Jones said, "Some significant changes have been achieved to the environment in which the dairy industry operates since the events of the summer of 2012. We've seen significant movement by most processors in signing up to the Dairy Industry Code of Best Practice for Contractual Relations. There is no reason by now that all milk purchasers are not adhering to the Code.

"We now need the market place to work effectively for everyone. 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."

The Royal Association of British Dairy Farmers’ chairman, Ian Macalpine said the dairy sector is facing 'huge opportunities for growth' but to succeed, it required 'the entire industry's support', he told a briefing at the Livestock Event on Wednesday.

“All the signals are that the world market should give the industry an opportunity to thrive in the future, and RABDF Council, made up of 13 dairy farmers from throughout UK, is enthusiastic and optimistic about the future.

“To that end, I think and wholeheartedly believe that the industry should work together to grow. That’s because growth will only happen with producers’ enthusiasm and drive for efficiency; growth will only happen with the supply chain working together, and that includes retailers and the trade we see here today. And finally, growth will only happen if we show we are a professional industry fit for purpose that deserves the respect of the market.

“Consequently, I believe we need to involve the entire industry – not only the farmer, the foodservice sector and retailer, but all the supply trade here at the event. We need to sit down and work out a way forward, agree the milestones and even consider changing the way we do business.”

He added: “Today, we can witness progress is already in action. We, RABDF has progressed this Event in the last few years moving out of the cowsheds into the professional arena. We have worked with the trade in developing the event and we have understood and felt its pain of the last 12 months. Here is the opportunity today to pass on the innovations and efficiencies the trade has developed for producers to help them progress their businesses.”