A UK organic dairy cooperative highlights "growing opportunities" in the United States as the potential impact of an impending Brexit looms.
The Organic Milk Suppliers Cooperative (OMSCo), formed in 1994 and now having 270 farmer members, reported a successful year-end at their annual members conference.
OMSCo’s strategy to spread risk through international market and product diversification remains key to the cooperatives success.
The cooperative's Chairman, Nicholas Saphir said: “Although we anticipate considerably more organic milk becoming available in continental Europe over the coming months, and have witnessed oversupply in the USA, UK demand has recovered and we’re successfully balancing demand with supply.
“We’re continuing to manage the challenges of the global dairy market with the potential impact of an impending Brexit.”
Over the past five years the cooperative has secured global alliances with Organic Valley and Eko Holland, and partnerships with UK and European processors including Wyke and Alpavit, all of whom were featured at the conference.
The cooperative also believe there are growing opportunities for OMSCo's USDA-certified cheese brand, Organic Kingdom, and organic butter in the USA.
Level of Brexit
With 25% of the milk produced by OMSCo approved by the USDA for export to the USA, Mr Saphir said he is confident this will be an increasing part of the long-term business strategy.
However, he acknowledged the risk that may arise should the government be unable to secure ongoing recognition of UK standards and a mutually acceptable future trade agreement.
“Dairy farming exports to Europe and the continuing use of toll processing, will solely depend on whether there is a hard, soft, or transitional Brexit,” he said.
“However, we continue to make progress through government lobbying, to ensure the mutual recognition of standards with the USDA once we leave the EU. The big challenge will be to see this recognition with Europe by 30th March 2019.”
'Think globally'
Nicholas’ speech was followed by comments from Mark Garnier MP - previously minister of the Department of International Trade and recently appointed to be the UK’s regional trade envoy to the US - who said the UK needs to think ‘more globally’, to capitalise on the ‘brave new world’ post-Brexit.
“There is strong demand for high-quality agricultural produce from UK farms, but we need to change our culture to one that seeks out global opportunities,” Mr Garnier said.
“With UK exports currently equating to around 27% of GDP - much lower than comparable economies such as Germany - we need to improve our export performance. Through the Trade Department, the government provides 186 offices in 107 countries around the world, to specifically help British exporters do just that,” he added.
With aspirations for over 40% of OMSCo’s future sales to come from exports and added-value dairy products, and 2019 marking the cooperative’s 25th year, Mr Saphir is positive about the future.
“As we focus on maintaining strategic relationships and existing trade agreements in Europe, we will also continue to drive opportunities for organic dairy on a global level,” he added.
