"Agriculture as a whole has the potential to thrive in a year predicted
to be marked by a full blown, recession, volatile food markets and changing climate." That
was the message National Farmers Union (NFU) President Peter Kendall delivered
to delegates to the British Cattle Breeders’ Conference on 21 January 2009.
However, he warned that the dairy industry, while having bright prospects,
faced significant short term pressures, which threatened to undermine the
viability
of many dairy farming businesses.
Mr Kendall said: "The dairy industry has all the right ingredients for a
very positive future - growing demand for dairy products, increasing consumer
demand and willingness to pay for high quality British food, and the capacity
to grow and take advantages of new market opportunities. |
|
"
However, in the short term dairy farmers are buckling under the pressure of unstable
milk prices, high input costs, the need for reinvestment on farm, low calf prices,
labour shortages, increased costs of borrowing and a worsening TB situation.
"
Against this backdrop, the recommendations set out in the NFU's Vision for the
Dairy Industry - which pioneered dedicated supply chains, better contracts and
greater efficiency throughout the supply chain - are more important than ever
in avoiding extreme market volatility."
Mr Kendall also called on government to reduce the burden of inspection on dairy
farms and in particular, highlighted the potential to reduce hygiene inspections
by recognising Farm Assurance as an indicator of low risk.
He said: "The NFU has been cooperating with Government and the Food Standards
Agency for a number of years to see a more risk based approach to inspections
on farm - reducing duplication, time and costs - yet progress is frustratingly
slow and our patience is wearing very thin.
"
This will be one of the many things the NFU will be calling for in it's Action
Plan for British Dairying, due to be launched very soon. The Plan will show leadership
to the supply chain and Government by offering remedies and solutions to many
of the short term pressures the dairy industry faces"