Report underlines Dairy's positive prospects

Dairy UK welcomes Kite’s upbeat analysis of the dairy market.

The report’s conclusion that the UK dairy industry has a positive, profitable future underlines the key message of Dairy UK’s White Paper - our analysis of the sector.

Our report also shows that increasing global demand for dairy will stimulate global markets, with the UK in a prime position to benefit.

Director General Jim Begg said: "For a while now, I have been saying that the long term prospects for the industry are good, although conditions are tough at present. I believe we could be approaching a turning point, with this latest report from Kite evidence of a change in sentiment.

"We have always been sensitive to the very real challenges facing dairy farmers and processors alike. But we have sought to take a longer term view. There are undeniably great opportunities for the more efficient and forward-looking dairy businesses, all driven by increasing world dairy consumption. Our industry must capitalise on that by keeping up the pressure to innovate, produce more efficiently and to consolidate."

Kite’s report was also welcomed by Roger Evans, Chairman of the Dairy UK Farmers’ Forum. He said: "Dairy farmers are facing huge challenges at the moment, so it is good to hear that Kite thinks we have reached the bottom of the price cycle. This will be particularly welcome news for younger farmers and should help build confidence in the future."