There are 'game changing' opportunities for dairy once the UK leaves EU as demand for dairy is growing globally and most British consumers have shunned plant-based alternatives.
This is according to a new report published by Dairy UK, the representative body of the UK dairy industry.
The “White Paper” report details the 'game changing' opportunities and challenges which the industry is facing over issues such as Brexit and consumer confidence in dairy foods.
The report called Brexit the most defining issue the industry has faced for generations.
The White Paper identified what Brexit needs to deliver to safeguard the future interests of an industry that employs more than 70,000 people, and has an overall turnover of nearly £28 billion.
On prospects for the industry, the White Paper reveals that an increasing demand for dairy globally is putting world milk production on an upward trend.
'Massive export boost'
On the issue of Brexit, Dairy UK says the continued trading agreements with the EU without tariff and non-tariff barriers will mean "massive" export and growth opportunities – failure will damage exports and reduce demand for dairy.
The report states that the worst outcome from Brexit would be a return to WTO rules, and an unhurried transition period would give the industry the chance to adapt and take advantage of the opportunities Brexit creates.
Access to skilled and unskilled labour is vital, the report notes. Failure to maintain access will drive up operating costs, with a major impact on margins.
It says the Northern Ireland border issue should be resolved by creating a frictionless and seamless border regime that could be a blueprint for future arrangements with the EU.
Demand growing
On industry prospects, the White Paper reveals that demand for dairy is growing globally and milk prices are on an upward trend.
The government is thus being urged by Dairy UK to work collaboratively with the industry to help exploit export opportunities around the world.
It is also being urged to review the Eatwell Plate Guide to take account of benefits of dairy.
On consumer confidence, the report says that UK consumers continue to support dairy loyally, despite the arrival of plant-based alternative drinks and anti-dairy activism.
The report notes figures which say that 87% consumers are drinking cow's milk, 94% of adults buying cheese and 78% enjoying yogurt or fromage frais,
Latest figures also show continuous growth in volume and value of sales of milk, cream, cheese yogurt, butter and organic dairy products.
The government has also been urged to keep dairy products exempt from the forthcoming Sugar Drinks Industry Levy when it is implemented next year.
'Love for dairy'
Paul Vernon, chairman of Dairy UK, said the White Paper demonstrates that consumer love for dairy remains "very strong".
“Brexit is a monumental challenge and a game changer. If Brexit is successfully delivered there is tremendous potential in terms of exports and product development. If it is a failure, there will be far reaching consequences for dairy,” Mr Vernon said.
“No effort can be spared by the industry, the UK government and the EU to secure a positive outcome and we will continue to give every assistance to the government to make that happen.”
“Given the increase in global demand for dairy, prospects are good. We do, however, need to seize the moment – and that will require yet more of the innovation and inspiration that have been the hallmark of our industry for generations.”
Dr Judith Bryans, chief executive of Dairy UK, added that the White Paper details the performance of the dairy industry across a wide range of areas including nutrition, consumer trends, farming and milk processing, animal health and welfare and the environment.
“It shows we have a track record we can be proud of but, like any major industry, we have to maintain our deep commitment to continually improve and innovate. Ultimately, we are judged by consumers and we are very grateful for the outstanding and enduring support they give to dairy,” Dr Byrans said.
