Dairy 2020 plan targets exports as key to ensuring the long-term health of sector

The Dairy 2020 plan, which was launched at the House of Commons, was produced from an 18-month collaboration of 40 key players in the industry, including major retailers, processors and producers’ organisations.

Paice said he believed that the British dairy industry could feature among the best in the world: the most competitive; the most productive and the most sustainable.

He also believed it could, through the plans laid out in Dairy 2020, help reduce the UK’s current bill for dairy produce with an annual dairy trade deficit of £1.2 billion.

The document which is long on sentiment, but short on detail, sets out a framework of guiding principles aimed at assisting the industry in delivering an integrated approach to sustainability.

It also lists areas where focus is needed to enable a sustainable dairy industry to thrive in the next decade and a set of scenarios describing possible futures for the industry, as well as key risks and opportunities that the industry might have to operate within in the same timescale.

Listening to Paice, George Jamieson, milk policy manager at the National Farmers’ Union of Scotland, said the guiding principles were firmly built around establishing a vibrant dairy industry that benefited all parts of the supply chain.

He was, however, keen to see the words turned into reality. “The challenge now is to see who reacts to the recommendations,” said Jamieson.

He said the milk supply chain had to fairly balance the share of risk and reward among producers, processors and the market.

Jamieson was pleased that the report also challenged processors to be more outward looking and innovative in developing markets and products.

He supported its call for more collaboration and genuine trust between processors and producers. “The 2020 guiding principles are all sound. Now we need action to match the rhetoric.”

NFU Scotland fully supported Paice’s comments on export opportunities as a key element for the future of the dairy sector. That was, Jamieson said, something that the union has been working on for some time.

“Like us, the minister sees our global competitors succeeding in buoyant dairy markets, while we watch from the sidelines. There is no reason why we can’t compete and Jim Paice seemed to echo our thoughts.”

He added that, north of the Border, the union would soon meet with Scotland Food & Drink, Scottish Development International and the Scottish Government to action a dairy policy on developing exports.

He also challenged the industry to make more immediate progress with the proposed Code of Practice for the dairy sector, as this would deliver more effective milk contracts in negotiation with milk buyers.

“Success here would also be in line with 2020 guiding principles, but failure would challenge the ambition of the 2020 initiative.”