UK dairy industry needs to be proactive
This includes submitting a new export strategy to the Government soon, which will address key issues such as trade barriers, target markets, certification processes and compliance and audit standards.
He noted that the industry is having to endure extremely difficult conditions as a result of oversupply of milk globally, intense price competition in falling markets, lower returns and deflation.
“We know what the problems are and there is no shortage of them. We understand that global milk supply is still growing too fast and is outstripping demand and we are not immune to significant factors such as the slowdown in the Chinese economy and the Russian ban on importing products,” Dr Dobbin said.
Economic sustainability the goal
“Our options are to wait it out, protest, face new legislation or we can up our game and take charge of our own destiny. We need to develop the demand for British dairy products and invest in promotion both at home and in target export markets,” Dr Dobbin said.
“Speaking not only as the chairman of an industry body but also the chief executive of a dairy business, whether you are a farmer or processor we all share the objective of economic sustainability and we need to build an industry where processors are profitable and able to pay a competitive and sustainable milk price to our farmers.
“The British dairy industry needs to become more competitive right along the total dairy supply chain, reducing cost and becoming more efficient.”
Dairy UK is a trade association that represents the interests of producer co-ops, milk processors, dairy farmers and bottle milk buyers.