EU Proposals for the Dairy Industry
I am writing in response to EFRA Select Committee’s inquiry on EU proposals for the dairy industry. The UK food and drink manufacturing industry is a committed customer of UK farmers, purchasing around two-thirds of the country’s agricultural production.
The Food and Drink Federation (FDF) supports the gradual phasing-out of dairy production quotas to ensure greater competitiveness in the sector. We are therefore pleased to see the European Commission’s report on the dairy market situation concludes that there is no reason to revisit this decision.
In that context it should be noted that shortages of skimmed milk powder, butter, butter oil and other dairy ingredients continue to arise. During the last 18 months, suppliers have at times struggled to fulfil contracted deliveries, with adverse consequences for the competitiveness of UK food and drink manufacturers who need access to adequate supplies of raw materials that are safe, of high quality and are competitively priced.
FDF members recognise that the dairy industry is going through a transitional period. But at the same time there is an urgent need for improved public data on the dairy sector comparable to the USDA system with greater transparency regarding production, processed products, public and private stocks and consumption. This would help to mitigate speculation which results in market volatility, improving the competitiveness of the dairy sector and ensuring greater security of supply.
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