The NFU has endorsed a report by the Milk Development Council which explodes
the theory that a massive cut in production would be the best way forward for
Britain’s dairy farmers.
The report ‘Routes to Profitability’ published today
concludes in a commodity market the real answer to solving the
UK’s milk market woes lie in
- Greater collaboration to improve supply chain efficiency
- Better contractual arrangements.
It states reducing commodity milk would be a ‘very painful
process’ involving low milk prices and the loss of between
20-40 per cent of UK dairy farmers.
NFU chief dairy adviser Tom Hind said: “'We have become
increasingly irritated by what can only be described as a 'dispersal
sale' of the British dairy industry by a small number of commentators
and dairy companies that advocate a significant reduction in
raw milk supply.
“Little hard evidence has been submitted by those who
advocate this approach to support the claim, and it has always
seemed implausible that shrinking supply in a country that is
not self-sufficient in milk or dairy products would have any
long-term benefit. Hopefully this report will help to draw a
line in the sand.”
The NFU believes the UK dairy industry has fantastic market
potential and competitive milk producers, the right ingredients
for growing rather than shrinking the industry.
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