23/11/06
A combination of equitable pricing and a new strategy to grasp
market opportunities will provide a future for Scotland’s
dairy industry, according to NFU Scotland’s Milk Committee.
The Union has also stressed that whilst milk prices have remained
unacceptable, other efforts to secure a better return for dairy
producers have paid off in 2006.
On prices, NFU Scotland’s recent campaign has harnessed
the support of the public. Events at shows and outside supermarkets
have reach consumers directly and secured their support. The NFUS
strategy is also focussed on helping the dairy industry lift itself
out of the current crisis through market development and product
innovation. The Milk Development Council is doing work to identify
opportunities and is expected to report by the end of the year.
NFUS has also highlighted that a great deal of work this year
has benefited dairy farmers. In particular, the successful efforts
to lift the beef export ban has delivered a market for dairy bull
calves. Likewise, finished cows can now attract a market price
of £400-500 a head, compared to an OTM value of just £200.
Additionally, the Union’s efforts to avoid a ban on the use
of tallow as a renewable fuel is estimated to be worth £10
a head and the ongoing deferral of cattle passport charges is valued
at £8 a head.
NFUS Milk Committee Chairman Willie Lamont said:
“There is a great deal of debate from all quarters on how
our industry moves forward and we must use that to drive change.
We are the most efficient producers in Europe, with 60 million
customers on our doorstep. That strength of position is further
enhanced if we use every opportunity to group together as farmers
to improve our negotiating position. That will help us build fairer
and more transparent relationships throughout the supply chain.
“The profile of the difficulties faced by our dairying members
has never been higher and we have put other parts of the supply
chain under the spotlight. We now have the public on our side,
which is how we will change retailers’ behaviour. There is
no quick fix on milk price, which makes the other efforts to secure
more immediate returns all the more important.”
NFUS Vice President Jim McLaren said:
“Milk price is undoubtedly the single most important factor
for dairy producers. However, whilst prices are still totally unacceptable,
there have been positive developments outwith that. We worked for
years with government to secure the lifting of the beef export
ban. From zero value, bull calves now have a market and some older
cows will have at least doubled in value. Those developments, on
top of avoiding the tallow ban and cattle passport charges, are
of huge financial significance to our dairy members.
“I know it is extremely difficult to talk of investment
in market development when the milk cheque barely covers costs
of production. However, the reason we’re working with other
groups, such as MDC, on opportunities is because I firmly believe
that we must innovate our way of the current crisis, by turning
low value product into added value product. That, combined with
pressure on the supply chain to reward innovation, can deliver
a future.”
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