Scottish dairy industry review launched
The Scottish dairy industry will undergo a strategic review, Scottish rural affairs secretary Richard Lochhead revealed on Wednesday (21 November) at AgriScot in Edinburgh.
Led by Scotland Food and Drink chief executive James Withers, a business advisory group, including high profile figures from the dairy sector, will form to develop a strategy for a sustainable and profitable sector. The group will report back to ministers by the end of March.
The review process will cover all parts of the supply chain and will:
- Review the efficiency and competitiveness of all parts of the Scottish dairy supply chain
- Assess the opportunities for greater collaboration among primary producers and the scope for further partnership working and integration
- Consider the UK and export market opportunity for value added Scottish dairy products
- Explore the potential for generic Scottish market development and brand support
- Evaluate primary production and processing capacity, with a view to maximising export potential and displacing imported dairy products
“Scotland’s dairy industry has huge potential yet, despite this, the sector has faced challenging times thanks, largely, to fluctuating market returns due to volatility in world commodity prices and outmoded contractual relationships,” said Mr Lochhead.
“That’s why I brought forward a five point action plan to address the various issues facing our dairy industry and this strategic review, which will be chaired by James Withers, is a key part of this plan.
“I’m particularly interested in exploring ways in which we can add value to our dairy products and exploit the market potential offered by the Scottish premium, allowing us to drive up export volumes as well as domestic sales.
“Our dairy industry has been an intrinsic part of Scottish rural life for generations and I’m determined to ensure we will have a thriving dairy industry for future generations as well. I look forward to receiving the recommendations from the review.”
James Withers
“Our dairy industry has been an intrinsic part of Scottish rural life for generations and I’m determined to ensure we will have a thriving dairy industry for future generations as well. I look forward to receiving the recommendations from the review.”
Mr Withers said: “We have witnessed a decade of frustration in the Scottish dairy industry, during which milk production has fallen and half our dairy farmers have quit. It is time for change. We have the ingredients for success with one of the most efficient milk fields in Europe, the highest standards of production and processing, rising demand for milk and dairy products and a growing national reputation for premium produce.
“What we need now is a clearer focus and a collective desire to consider real change. That means developing a long term growth plan for the sector and challenging existing ways of doing business. We need to think about what we could and should produce in this country, what markets we should target – here and overseas – and how we better structure ourselves.”
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