Foot and mouth continues to wreak havoc in the UK with 31 cases of the disease now discovered at farms and abattoirs the length and breadth of the country. Fears are also growing that the disease has spread to the Republic of Ireland.

But there was better news for dairy processors on Monday when the European Commission relaxed a ban on exports of dairy products from the UK.

However, confusion persists over exactly which products are banned. The Dairy Industry Federation, which represents 90% of British processors, said pasteurised liquid milk and unpasteurised dairy products were subject to a ban preventing some British agri-food exports to Continental Europe.

However, the European Commission claimed liquid pasteurised milk exports from the UK could still go ahead because heat treatment kills the foot and mouth bug. Negotiations are underway to clarify the situation.

Whatever the truth, manufacturers of processed dairy foods, including cheese and yogurt, breathed a sigh of relief at the news. An outright ban had threatened to cost the industry nearly