FDBusiness.com

Dairy UK has urged the UK Government to ‘lend its full weight’ to extend intervention so as to create outlets for dairy products this spring and summer in the face of the threat posed by a growing oversupply in EU dairy produce. Dairy UK is the trade association for the British dairy supply chain. It brings together processors, dairy co-operatives, manufacturers, farmers and bottled milk buyers throughout the United Kingdom.

Dairy UK Chairman Dr David Dobbin has written to Farming Minister George Eustice to raise concerns about the rapidly increasing amount of skimmed milk powder being submitted into intervention.

In his letter, Dr Dobbin says: “Despite depressed returns, the growth in global milk production, especially from Europe including the UK, is still rising and running well ahead of global demand. As a result, stocks of powder, butter and cheese are high and skimmed milk is being intervened across Europe, including the UK.”

Dr Dobbin says if the current milk supply production profile is maintained the UK dairy industry is facing a large surplus of milk over immediate demand this spring peak.

Dr Dobbin sets out in his letter a range of options on how Government could help ensure a smooth transition on intervention.

He says: “We are asking you to use the lobbying weight of the UK Government with the Commissioner to achieve a smooth transition regarding intervention at this difficult time. This would help avoid further distress at farmer and processor level and would be a positive way in which DEFRA can help the UK industry.”

In a call to the entire UK dairy industry, the Dairy UK Chairman says: “All of us in the UK dairy industry have to up our game and do what we can to hunt out opportunities in domestic and export markets to increase demand for our quality British dairy products. Dairy UK has recently published a new export strategy for the UK dairy industry highlighting the need for Government to work closely with the dairy industry to develop ways to promote UK dairy globally and generate more demand in international markets.”