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Scottish Dairy Review

Scottish Dairy Review
December 03
11:51 2012

Achieving sustainable economic growth for Scotland’s dairy sector is the key aim of an industry-wide strategic review launched by the Scottish Government.

Rural Affairs Secretary Richard Lochhead announced that Scotland Food & Drink chief executive James Withers would lead the review, which will report to ministers by the end of March. James Withers will be supported by a business advisory group, including high profile figures from the Scottish dairy sector, and the membership of the advisory group will be confirmed shortly.

The review, which will encompass all parts of the supply chain, will:

* Review the efficiency and competitiveness of all parts of the Scottish dairy supply chain

* Assess the opportunities for greater collaboration among primary producers and the scope for further partnership working and integration

* Consider the UK and export market opportunity for value added Scottish dairy products

* Explore the potential for generic Scottish market development and brand support

* Evaluate primary production and processing capacity, with a view to maximising export potential and displacing imported dairy products.

“Scotland’s dairy industry has huge potential yet, despite this, the sector has faced challenging times thanks – largely – to fluctuating market returns due to volatility in world commodity prices and outmoded contractual relationships,” says Richard Lochhead, “I’m particularly interested in exploring ways in which we can add value to our dairy products and exploit the market potential offered by the Scottish premium, allowing us to drive up export volumes as well as domestic sales.”

Jame Withers comments:”We have witnessed a decade of frustration in the Scottish dairy industry, during which milk production has fallen and half our dairy farmers have quit. It is time for change. We have the ingredients for success with one of the most efficient milk fields inEurope, the highest standards of production and processing, rising demand for milk and dairy products and a growing national reputation for premium produce. What we need now is a clearer focus and a collective desire to consider real change.”

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