The learning curve
The challenges faced by our industry in the short term are many, even as the medium and long-term outlook is bright. That was the takeaway from two conferences held in various parts of the UK recently: The Organic Milk Suppliers Co-operative Positive Dairying conference in Birmingham, and the European Dairy Association’s annual congress in Edinburgh.
What everyone recognises is that the current state of affairs with very low farmgate milk prices is now beginning to turn. This is certainly good news for the farmers, but maybe less great for the processors as sourcing raw milk gets more expensive.
Pricing of supplies appears to be gravitating towards the Swiss model, where milk is priced according to which end market the milk is to be used for. This may go some way towards alleviating farmers’ woes, and can be helpful for processors as well.
As it has also been pointed out, this brave new world of post-quota production is a learning curve for all parties involved. I look forward to seeing what the next development is for dairy.
