Dairy UK argues for industry’s future

Dairy UK has made strong representation to Westminsters Environment, Food and Rural Affairs Committee as part of the committees inquiry into the proposed EU dairy package.

Speaking after giving evidence to the committee inquiry, Jim Begg, Director General of Dairy UK said: Were looking at the Commissions package from the perspective of delivering arrangements which will maximise stability in a volatile environment, and the ability of the industry to ensure long term profitability throughout the supply chain.

Within that we are clear that we need to have profitable dairy farmers earning a decent return and with funds to invest in their businesses. Without this we have no farmers, and therefore no industry. Its a no brainer really.

The package is still evolving through the European Parliament, but at this stage, its difficult to see how it will add to the pie, or address the key challenges of managing volatility of both input costs and market revenues. Indeed, some of the proposals may work against stability.

We all want to find more certainty and have a better understanding of how markets work, and weve explained our ideas to the Select Committee. But above all, we must be careful not to sacrifice all that weve gained in the industry with better supply group co-operation, the development of a wide range of farmer contracts and more stable supply relationships which can lead to the payment of market premiums. A regulatory approach could prejudice this.

At the hearing we were encouraged by governments interest about how it could provide more support for the industry. Communication with consumers to develop a greater understanding of the benefits of dairy and the care and attention our farmers exercise when producing milk, support for  British is best, innovation, investment and real collaboration to improve efficiency are all areas where further positive change can be delivered.

Our objectives are the same as everybody else, we want to secure a better more prosperous future for everybody in the supply chain. Its a complex debate, and its much wider than the Commissions dairy package. The industrys future is at stake and thats what were all fighting for.

Dairy UK is a trade association that represents the interests of dairy farmers, producer co-ops, milk processors and doorstep deliverymen. For more information visit www.dairyUK.org