Farming Talk: Favourable outlook for farming and food

The Minister delivered this encouraging message when he opened the 2014 Outlook Conference. He also identified a number of issues of importance in ensuring this growth can be sustained, including support for new entrants to farming.

This annual conference, organised by the Agriculture and Horticulture Development Board, looked at the economic challenges for the red meat and dairy sectors in the short and medium term. The messages which emerged were generally positive, with forecasts suggesting some increases in production across the livestock sectors as 2014 progresses.

A positive demand outlook for meat and dairy products on international markets was forecast for the coming year as the global economy improves. Interestingly, it was pointed out that prices are often higher in much of the developing world than in more established markets, providing attractive opportunities for exporters.

As far as the dairy sector is concerned, the NFU, Dairy UK and DairyCo have been working together to develop a strategy with the main aim of eliminating the UK dairy trade deficit by 2025. Conference delegates were told that the target could be achieved by increasing milk production by three-to-five billion while meeting the key tests of sustainability, economic, social and environmental. The strategy entitled Leading the Way is to be officially launched in the summer.

Each year DairyCo carries out a survey of over 1,000 dairy farmers to investigate current practices, attitudes to investment and confidence in the future.

The outcome of this year's survey is encouraging. Only four per cent of those surveyed planned to cease production within the next two years and confidence in industry is at a three-year high. The survey also showed that there is a strong commitment to the future dairy industry at farm level.

In relation to dairy prospects on EU and global markets, the view from Europe is also positive.

The current market in Europe favours expansion due to the current high milk prices and relatively low feed costs. The EU Commission has recently forecast strong growth in milk output in the first few years after quota, and while consumption is expected to increase a little as countries emerge from the economic crisis, much of the extra milk is expected to be exported. Importantly, demand for milk products is there on the world market.

I recall raising concerns in this column about a year ago about the danger of the UK dairy industry, which has been contracting in recent years, missing out on these opportunities. The NFU-led strategy will be a key initiative and it deserves the support of all the industry.

John Sumner is secretary of Shropshire Chamber of Agriculture

According to the Food and Farming Minister George Eustice, the demand for UK food and drink exports is increasing with potential for further growth in places such as China and India.

The Minister delivered this encouraging message when he opened the 2014 Outlook Conference. He also identified a number of issues of importance in ensuring this growth can be sustained, including support for new entrants to farming.

This annual conference, organised by the Agriculture and Horticulture Development Board, looked at the economic challenges for the red meat and dairy sectors in the short and medium term. The messages which emerged were generally positive, with forecasts suggesting some increases in production across the livestock sectors as 2014 progresses.

A positive demand outlook for meat and dairy products on international markets was forecast for the coming year as the global economy improves. Interestingly, it was pointed out that prices are often higher in much of the developing world than in more established markets, providing attractive opportunities for exporters.

As far as the dairy sector is concerned, the NFU, Dairy UK and DairyCo have been working together to develop a strategy with the main aim of eliminating the UK dairy trade deficit by 2025. Conference delegates were told that the target could be achieved by increasing milk production by three-to-five billion while meeting the key tests of sustainability, economic, social and environmental. The strategy entitled Leading the Way is to be officially launched in the summer.

Each year DairyCo carries out a survey of over 1,000 dairy farmers to investigate current practices, attitudes to investment and confidence in the future.

The outcome of this year's survey is encouraging. Only four per cent of those surveyed planned to cease production within the next two years and confidence in industry is at a three-year high. The survey also showed that there is a strong commitment to the future dairy industry at farm level.

In relation to dairy prospects on EU and global markets, the view from Europe is also positive.

The current market in Europe favours expansion due to the current high milk prices and relatively low feed costs. The EU Commission has recently forecast strong growth in milk output in the first few years after quota, and while consumption is expected to increase a little as countries emerge from the economic crisis, much of the extra milk is expected to be exported. Importantly, demand for milk products is there on the world market.

I recall raising concerns in this column about a year ago about the danger of the UK dairy industry, which has been contracting in recent years, missing out on these opportunities. The NFU-led strategy will be a key initiative and it deserves the support of all the industry.

• John Sumner is secretary of Shropshire Chamber of Agriculture