Milk 'strikes' and shortages hit Europe as UK dairy industry reels from crisis- by Jamie Doward
Yet for all the despondency in the dairy sector, almost all involved agree that it would be quite wrong to pen its obituary now. Dairy UK, the trade body that represents milk processors and distributors, said it was "cautiously optimistic" about prospects. Even Edwards expresses hope. "If you've been in this business for this long, then you've got to be an optimist," he said. They believe a phased liberalisation of EU milk production – due to come into full force in 2015 – should help the UK's dairy farmers. Germany, for example, is allowed under the EU quota system to produce some 25bn litres of milk a year – twice what the UK is currently producing. When this system is finally dismantled, the argument runs, the gloves will come off and Britain's redoubtable dairy farmers can take on their foreign counterparts on a level playing field for the first time.
"The UK is one of the most competitive and efficient milk producers in the EU," said Helen Eustace, an economist with DairyCo. All the available data suggests that global demand for milk can only increase, she believes. "That's why competitive British dairy farmers should be confident that average prices will, in the medium – and long – term, return profits."
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