Dairy industry must unite to grow the market
The short-term price pressures in the dairy supply chain can only be resolved in the long term by a united industry working to grow the market and developing fair trading terms said NFU dairy board chairman Mansel Raymond.
Speaking at the South West dairy event in Shepton Mallet earlier this month Mr Raymond insisted that the industry must look longer-term for solutions to problems with milk pricing and said the NFU dairy vision and strategy 'Compete to Grow' was the blueprint for a competitive and profitable dairy industry.
"I know there is a lot of frustration out there among dairy farmers over what they are being paid for their milk and I'm fighting for the price rises that farmers so urgently deserve," Mr Raymond said.
"That said, we have got to break this cycle of delays, anger and eventually militancy that now seems to define our industry. Our focus must be on getting the industry ready to face the challenge a post quota global dairy industry poses.
"This event today is exactly one year on from the launch of the voluntary code and that is just the start as far as we are concerned. We are pleased with the progress so far, and I'm hopeful that we will have an independent review chair in place to announce next week.
But right now we need farmers to get behind the code and demand changes, rather than allow it to be weakened by those with an interest in doing so.
"An issue we know we must address is the differential treatment of co-operative members under the code. It is important that co-operatives operating in the UK recognise and respect their responsibilities under the code.
"There are other real challenges we must face head on. We need a greater uptake of determinable pricing mechanisms. You only have to look at the various industry formulas now in place to see that they are successful and provide realistic pricing levels, which reward farmers when market conditions are good – and will help them to prepare when times are difficult.
"We need to support and help develop producer representatives and empower farmers in negotiations, not undermine them, and we must work together within the industry.
"We can only face these problems and grasp these opportunities if all the different sections of the industry come together and work towards a common goal. That is what Compete to Grow is about and that is why we are determined to use it as the basis of our work.
"Yes, there are important immediate concerns we must address, but only if we implement the only truly unified long-term strategy will the dairy industry be able to face the future with real confidence."
