The UK dairy industry could profit from a drop in milk production, according to Arla UK’s chief executive Tim Smith.

The Arla boss says there is too much milk on the UK market and cutting one billion litres out of Britain’s milk production could help those remaining in the sector work more profitably.
Britain’s farmgate milk prices average around 18p are among the lowest in the EU and a recent report by the Milk Development Council warned that Britain was lagging behind other countries in added-value dairy sectors.
Another report, commissioned by Defra, said that by 2007/08 the country could be facing a worst case scenario of milk production