Speaking after giving evidence to the committee inquiry, Jim Begg, director general of Dairy UK, said: “We’re looking at the Commission’s package from the perspective of delivering arrangements which will maximise stability in a volatile environment, and the ability of the industry to ensure long-term profitability throughout the supply chain.
“Within that, we are clear that we need to have profitable dairy farmers earning a decent return and with funds to invest in their businesses. Without this, we have no farmers and therefore no industry. It’s a no-brainer really.
“The package is still evolving through the European Parliament, but at this stage, it’s difficult to see how it will add to the pie, or address the key challenges of managing volatility of both input costs and market revenues. Indeed, some of the proposals may work against stability.
“We all want to find more certainty and have a better understanding of how markets work, and we’ve explained our ideas to the Select Committee. But above all, we must be careful not to sacrifice all that we’ve gained in the industry with better supply group cooperation, the development of a wide range of farmer contracts and more stable supply relationships which can lead to the payment of market premiums. A regulatory approach could prejudice this.
“At the hearing, we were encouraged by government’s interest about how it could provide more support for the industry. Communication with consumers to develop a greater understanding of the benefits of dairy and the care and attention our farmers exercise when producing milk, support for British is best, innovation, investment and real collaboration to improve efficiency are all areas where further positive change can be delivered.
“Our objectives are the same as everybody else, we want to secure a better more prosperous future for everybody in the supply chain. It’s a complex debate, and its much wider than the Commission’s dairy package. The industry’s future is at stake and that’s what we’re all fighting for.”
Source: Dairy UK
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