Dairy UK Sees Light at the End of the Tunnel

UK - Dairy businesses the length and breadth of the supply chain are facing a tough 2009 as the economy contracts and spending falls. But the bleak mixture of difficult trading conditions, high input prices and further regulation won’t last forever, according to Dairy UK.
calendar icon 5 January 2009
clock icon 2 minute read

Director General Jim Begg said: “The end of the year is traditionally a time for stock taking. Milk prices, input costs, energy prices, increasing regulation and falling consumer confidence; all these are serious concerns in the months ahead.

“We know that dairy farmers are experiencing very tough conditions, with historically high prices still for many inputs and pressure on returns. Milk processors are also facing a difficult market. They are caught between calls for high milk prices and a drive for lower consumer prices, and they are responding by rationalising and cutting costs.

“But Dairy UK believes businesses in the dairy sector can draw comfort from the longer term view. Dairy demand growth is still outstripping production growth in the developing world. Here in the UK and Western Europe, our consumers remain loyal and retain their appetite for new and innovative dairy products. As retailers must recognise, there is still strong demand for British dairy products made with high quality British milk.

“Britain and Northern Ireland continue to be among the most competitive environments in which to produce milk, thanks to a mild, wet climate. Cost relief should start to feed through from lower oil prices this year. And our industry is working hard to improve its environmental footprint and become a world leader in sustainable production.

“Yes times are tough, and many dairy businesses are feeling the pain. Dairy UK is working hard to build political support for the sector and head off more unnecessary costs. We also offer a business support service, which is of particular value to our smaller members.

“For those who choose to keep dairy farming, there will be rewards to be reaped.”

TheCattleSite News Desk

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