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Future of UK Dairy Industry is Strong

15 September 2009

UK - The UK dairy market is in a strong competitive position and producers should be confident about the future, say two leading industry organisations.

Dairy UK and DairyCo have joined forces to encourage dairy farmers to invest in their businesses. In a joint report, 'Investment Prospects for British Dairy Farmers', both associations acknowledge that UK milk production is falling due to a lack of confidence by farmers to invest because of uncertainty over future prices and profitability.

Both organisations argue that the UK is in a strong competitive postition and that dairy farmers can be confident about their future in a world of growing demand for dairy products if they are running their businesses well and supplying successful and competitive processors.

Dairy UK Director General Jim Begg said: “I hope we can build on this realistic yet positive assessment of our industry's future with further work together. We recognise that times are tough for farmers, but in the long run, processors need profitable dairy farmers and market trends look favourable.”

DairyCo Director Ken Boyns said: “Farmers’ lack of confidence is combined with a lack of committed and mutually constructive relationships in some supply chains. Those that have already been put in place by some retailers recognise the need for dairy farmers to cover their cost of production, which is a great step forward.”

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