Tough times, but dairy industry set to exploit brighter future for farmers

Positive action is being taken by the UK dairy industry to address short-term pressures on the market place.

This conclusion is revealed by Dairy UK with the publication of The White Paper 2009 – a comprehensive look at the future of the industry. Copies have already been sent to Defra Secretary Hilary Benn and his counterparts in the devolved administrations.

Launching the document the Dairy UK Director General Jim Begg said: "Although times are challenging at the start of 2009, in the longer term the signs are good. Commercial prospects are strong, with a weak pound helping our exporters and strengthening the domestic market. Globally, the supply and demand balance will return to our favour again."

Begg urged industry commentators to quit doom mongering about the prospects and start acting constructively. "Factors depressing milk output are short-term, including price volatility and a shortage of replacement heifers. Industry is working to tackle the former through consolidation and innovation, while heifer numbers are on the up again.

"When you look at the UK’s appetite for innovative, high quality dairy products, and the ability of our farmers and processors to supply them efficiently, the sector is in a strong position.

"It is our job to ensure that Government recognises the industry’s crucial importance and acts accordingly. We are calling for more balanced regulation, a softer touch on consolidation and more R&D. Government must also take immediate steps to tackle bovine TB effectively, or give industry the tools to do so. Further procrastination is not an option.

"Together we must make it clear that we are Proud of Dairy and confident in its future."