Dairy UK Chairman urges OFT not to thwart dairy industry development

The chairman of Dairy UK today urged the Office of Fair Trading not to stand in the way of development and consolidation in the dairy industry which may bring stability to the sector.

The Rt. Hon David Curry, MP, told an audience of 250 industry representatives at Dairy UK's annual dinner in London that the future of the dairy sector would be jeopardised if competition authorities prevented the development of a more powerful supply chain.

He said: "We must make the competition authorities understand that the market is more open and competitive than they tend to believe. We must have the same principles for the supply chain and retail sector so companies can grow and, where necessary, merge to achieve greater efficiency, synergies of product and generate resources for investment.

"Of course, there have to be rules to protect the public interest but we cannot have a situation where the development of a more powerful – and therefore more productive – supply chain is prevented by rules that are seen to be unbalanced. That would be very bad news for the sector indeed."

Mr Curry also said the dairy industry had to rise above the infighting that afflicts the sector.

He said: "We have simply got to stop biting each other's heads off. If we expend too much energy fighting within the sector it will simply make it much harder to make our voice heard in government and to convey a clear message to our customers."

The recently elected chairman of Dairy UK also said that farmers also had to face up to harsh realities within the ferociously competitive climate of the dairy sector.

He said:" I can fully understand how dairy farmers are confused, baffled, frustrated and resentful over how hard it is to make a living. They have it tough and we all must remember that if no-one is producing milk there will be no dairy industry.

"However, as the NFU bravely acknowledges in its 'Vision for the Dairy Industry' document, farmers will have to do more in supply chain management and efficiencies in delivering to customers.

"Farmers are the first part of the food chain but it is no longer enough to think you have the right to produce something just because it is agreeable to do so. Farmers are every bit as part of the process to deliver greater efficiency as anyone else."