The call for help for NI dairy producers and processors was made as part of an ‘Action for growth’ plan for the whole UK dairy sector launched at a reception for MPs in London on March 7.
“The key target for us going forward is growth,” said Jim Begg, director general of Dairy UK, speaking at the event organised by the All Party Parliamentary Group on Cheese, supported by Dairy UK.
“But, of course, government can always help. The areas we think co-operation from government is most essential to assist us going forward, we have set out in this publication ‘Action for growth’."
More than 80% of NI milk is sold outside the province. Although Britain and the EU are key markets for NI dairy products, exports outside the EU are becoming more important.
Global demand for dairy products is predicted to grow by 16% between 2009 and 2018, according to Dairy UK – an annual growth rate of about 2%. This offers considerable potential for the UK’s dairy sector, which according to Dairy UK currently has a turnover of £8.1bn. Also, it directly employs about 80,000 people.
Undermined
However, Dairy UK reported that export potential from NI could be undermined by stiffer competition from the Republic of Ireland. Dublin had already recognised the potential of its dairy industry to help with the nation’s economic recovery. Close co-operation between government and the industry in the Republic had led to a strategy of growth based on exports. This would see a 50% increase in milk production by 2020, said Dairy UK.
Dairy UK called for the UK government to emulate this model across the UK, but with particular emphasis on NI. In ‘Action for growth’, it identified 12 policy areas which are key to the industry’s continuing success and where co-operation from the government was essential.
These range from funding for research and development and support for the introduction of new technology, to a review on nitrate vulnerable areas, action on reducing Bovine TB, farm restructuring and reform of the Common Agricultural Policy.
Favour domestic
As well as seeking assurances that laws will continue to support competition within the supply chain, and backing for a mandatory framework of country of origin labelling, Dairy UK wanted the government to get behind communication of the nutritional benefits of dairy products. It also wanted the government’s public procurement policies to favour domestic production.
Dairy UK would like the government to facilitate the development of export opportunities by helping to reduce the costs of exploring new markets. This could be achieved by centralising information on regulatory requirements in selected markets, it claimed.
Other action sought on exports included:
- streamlining and simplifying the process of issuing export health certificates;
- greater exchange of information on export opportunities;
- better co-ordination of UK presence at major trade shows.
Dairy UK also called for a reduction in unnecessary costs on the industry, which impeded its competitiveness, and a reduction in the regulatory burden on the sector.