UK dairy industry publishes report covering Brexit issues

By Jim Cornall contact

- Last updated on GMT

Diary UK says the dairy industry is strong and has consumer support, but there are still challenges to be tackled.
Diary UK says the dairy industry is strong and has consumer support, but there are still challenges to be tackled.

Related tags: Dairy uk, Milk, International trade

Dairy UK, the representative body of the UK dairy industry, today published its “White Paper” report for 2017, outlining opportunities and challenges - including Brexit and consumer confidence in dairy foods.

Dairy UK called Brexit the most defining issue the industry has faced for generations, with the White Paper 2017​ identifying what Brexit needs to deliver to safeguard the future interests of an industry that employs more than 70,000 people, and has an overall turnover of nearly £28bn ($36.8bn).

Brexit issues

On Brexit, Dairy UK said continued trading agreements with the EU without tariff and non-tariff barriers will mean massive export and growth opportunities, whereas failure will damage exports and reduce demand for dairy.

It said the worst Brexit scenario is a return to WTO rules.

Dairy UK added access to both skilled and unskilled labour is vital, and failure to maintain access will increase operating costs, with a major impact on margins.

The report also noted UK dairy farmers should not be disadvantaged compared with their European counterparts.

The Northern Ireland border issue should be resolved by creating a frictionless and seamless border that could be a blueprint for future arrangements with the EU, it added.

Industry observations

The white paper notes demand for dairy is growing globally, and milk prices are on an upward trend.

It urges the UK Government to work collaboratively with the industry to help exploit export opportunities around the world.

Strong figures

On consumer confidence, Dairy UK says UK consumers continue to support dairy. Its figures say 87% of consumers drink cow's milk, 94% of adults buy cheese and 78% purchase yogurt or fromage frais.

On the ‘sugar tax’, or the Sugar Drinks Industry Levy, the report stated nutrient-rich dairy products should be exempt when it is implemented next year.

Innovation needed

Dr Judith Bryans, chief executive of Dairy UK, said the White Paper details the performance of dairy in a wide range of areas including nutrition, consumer trends, farming and milk processing, animal health and welfare and the environment.

"It shows we have a track record we can be proud of but, like any major industry, we have to maintain our deep commitment to continually improve and innovate,”​ Bryans said.

“Ultimately, we are judged by consumers and we are very grateful for the outstanding and enduring support they give to dairy."

Related topics: Markets, Dairy Health Check

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