• Events
  • Masters Course
  • Members area
  • Jobs
  • Media Centre
  • UK
  • USA
  • India
Home
  • Home
  • About
  • Our Work
  • Projects
  • Blogs
  • GreenFutures
  • The Lab
  • Forum Network
  • GreenFutures

What we work on

  • Food
  • Energy
  • Finance
  • Other sectors

How we do it

  • Futures & Diagnosis
  • Innovation
  • Scaling up
  • Sustainable Business
Home › Blogs › Show All › What's wrong with the UK dairy industry?

Filter

  • Show All
  • Forum Blog
  • Jonathon Porritt
  • Weak Signals

What's wrong with the UK dairy industry?

20th July, 2011 by Paul Flanagan | Add a comment
Tags :
  • Agriculture
  • Diagnosis

A couple of weeks ago I was at a press briefing before a Northern Irish farmers conference. Those sitting in the packed room ready to answer questions from journalists included Sir Henry van der Heyden the chairman of Fonterra, the largest processor of milk in the world and John Maloney, managing director of Glanbia, the global cheese and nutrition group. Maloney and van der Heyden were no doubt waiting for questions on their company strategy or what other people could learn from their successes.

However, the first question was very succinct: 'What's wrong with the UK dairy industry?'

Unfortunately that's a question we hear a lot in the UK and the answer given of course depends very much on who’s in the room and who's asking the question. However, I can guarantee you something. As people in the UK chew over the question, inevitably some people in the UK dairy industry, or some trade association or some part of the supply chain will get the blame for the current situation.

And that’s where the Dairy2020 project differs. At the workshops we have had there are a whole range of people in the room including farmers, processors, Government, NGOs, retailers, trade associations and food manufacturers. We could easily sit around all day and talk about the areas where we disagree. But that would be a waste of time. So we are focusing on the key drivers for the industry, what we think the industry may look like over the next decade and the short-, medium- and long-term objectives that each part of the supply chain need to do if we are to have a successful dairy industry in this country.

And there’s a whole lot of positives for us in the UK. Contrast us with New Zealand, a small country of four million people in the middle of the Pacific Ocean. Ask any reasonable observer and they would say that clearly we in the UK have been dealt a better hand. However, through vision, determination and delivery they have built a dairy industry that works towards shared goals and now produces over 16 billion litres of milk. The Kiwis have never sat and wallowed in the many negatives that they faced, they have got out there and made markets for themselves that suit their circumstances.

The way forward for us in the UK will be built on some innovative thinking. We need bright people to build on each other's ideas and that's part of what the Dairy2020 project is all about. Of course we have to recognise the challenges that the industry faces, but we must be prepared to shape our future and not get knocked off course by those who simply don’t like change.

Robert Kennedy summed up that mind-set best when he said, 'There are those who look at things the way they are and ask why ... I dream of things that never were and ask why not?'

For me, Dairy 2020 is about dreaming a bit and then grounding those dreams in hard actions that create a fantastic dairy industry that is sustainable for all of us.

Paul Flanagan is Communications Director at First Milk

Dairy2020 is a collaborative project facilitated by Forum for the Future that brings together the high-profile leaders who can effect change in the UK dairy industry. It is using a futures approach to create a strong sense of momentum and focus in the industry, resulting in tangible short, medium and long-term collaborative actions for sustainability. You can find out more about the project by visiting the dedicated website: www.dairy2020.com

Add your comment »

Comments

Anonymous (not verified), 28 April 2012 - 10:41
  • reply

Fonterra is owned by 20,000 NZ dairy farmers together they own the supply chain which delivers their products to their markets. Profit follows power in the supply chain this means that they can continue to invest strategically at processor and at farm level which helps to create this vibrant and innovative dairy industry.
Contrast that with the UK where the power in the supply chain does not lie with processors or producers. The margins and profit disappear higher up the supply chain which means that over many years there has been a shortage of capital for investment particularly in innovation and R&D. We have had under investment both at UK processor level and at farm level and a milk supply which has declined over many years and a dairy industry which has lacked the resource to invest in innovation. We have a processing industry which is migrating into the ownership of overseas investors and as a consequence we will see more of the margins from processing also dissapear out of the UK industry. This is likely to exacerbate the problem further.
Part of the reason for this is the failure of the UK to establish an effective vertically integrated producer owned dairy supply chain. Where other countries have achieved this, the power in the supply chain is better balanced and the profits from the supply chain are invested to create the kind of dairy industry which NZ has become.
The Uk dairy industry is built on a bedrock which is the UK dairy farmer and for vision 2020 to be realised there that bedrock needs to be strengthened not undermined.

Add your comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
Please type in the letters and numbers that you see. This is to establish that you are in fact a human being. Case sensitive.
i
q
g
D
y
>
K
f
Enter the code without spaces and pay attention to upper/lower case.

Recent Articles

What's wrong with the UK dairy industry?
Forum - Blog
A couple of weeks ago I was at a press briefing before a Northern Irish farmers conference. Those sitting in the packed room ready to answer questions from journalists included Sir Henry van der Heyden the chairman of Fonterra, the largest processor of milk in the world and John Maloney, managing director of Glanbia, the global cheese and nutrition group. Maloney and van der Heyden were no...

Our Partners

Contact

  • Forum in the UK
  • Forum in the USA

Keep in touch

  • Join us on Facebook
  • Follow us on Twitter
  • See us on LinkedIn
  • Forum pics on Flickr
  • Forum on YouTube

 Sign up to our newsletter

About Us

  • Meet the team
    • Forum staff
    • Affiliates
  • Our history
  • Our achievements
  • Our governance
  • Who do we work with?
  • Annual reports

Forum Network

  • Work with us
  • Members area

Our Work

  • What we work on
    • Food
    • Energy
    • Finance
    • Other sectors
  • How we do it
    • Futures & Diagnosis
    • Innovation
    • Scaling up
    • Sustainable Business

Projects

  • Show all
  • Food
  • Energy
  • Finance
  • Other Sectors
  • Futures & Diagnosis
  • Innovation
  • Sustainable Business
  • Scaling Up

Blogs

  • Show All
  • Forum Blog
  • Jonathon Porritt
  • Weak Signals

© 2011 Forum for the Future | Terms of Use | Accessibility | Privacy Policy | Site Map | Login | Logout

Site built by : New Digital Partnership

The Forum for the Future is a registered charity and a company limited by guarantee, registered in England and Wales. Registered office: Overseas House, 19-23 Ironmonger Row, London, EC1V 3QN, UK. Registered charity no. 1040519. Company no. 2959712. VAT registration no. 677 7475 70