SEMEX CONFERENCE ‘20:20 VISION’
Challenges ahead, but opportunity knocks for dairying in the next decade,
conference hears. The coming decade will bring major political change for the
dairy sector, a signifi cant shift in the relationship between farmer and processor,
and an increased focus on “green” issues and responsibilities. But overall the
decade will be one of great opportunity for effi cient dairy businesses. So said
speakers at the Semex conference, entitled “20:20 Vision”.
has recently introduced for its suppliers into the Milk&More market.
Speaking with his colleague Edward Lott, Mr Allen said the next decade
would also require investment to comply with legislation, optimise
production, reduce the carbon load, and to introduce new technology
to replace labour. Mr Lott estimated that a target of 3ppl would be
necessary to fulfi l these obligations. The target would be achieved by
the most effi cient farmers, he predicted, as the most effi cient once had
continued to invest despite the diffi culties of the last decade.
Hayley Campbell-Gibbons, chief dairy adviser at the NFU, stated that
2010 marked “the start of a fundamental change in how milk would be
bought and sold across the EU”, as changes to bring about fairer milk
contracts for producers was fi rmly on the EU’s agenda. “Current contracts
hand power to the processors, but they can help manage volatility,” she
said. “It is unwise to underestimate the power of the EU’s High Level
Group,” she added, and made an unreferenced swipe at Dairy UK by
stating that “there are some in the industry who downplay the High Level
Group’s interest in contracts, and who suggest things in the UK dairy
industry are fi ne. They aren’t.”
2010 would also see the publication of a White Paper for EU dairy
F
armers would have to learn to live
policy, which she encouraged farmers to become engaged with, as
with volatility and be “professional
lobbying organisations were already infl uencing the debate. The CAP
on profi t” and “professional on
budget is likely to be scaled back, with far less money being available for
people” according to John Allen
direct income support, she warned.
(pictured above), of dairy consultancy
Predicting other EU changes for the sector would be diffi cult this year,
said Richard Wright, journalist, political commentator and expert on EU
fi rm Kite. Although this year would
matters. That’s because the fi rst year of the new EU farm Commissioner
not prove to be anything spectacular
Dacian Ciolo’s tenure would be one of settling in, rather than one where
in terms of milk price rises the long-
anything dramatic took place. The only certainty was that Ciolo would
term outlook for dairy is excellent, and
not revisit the decision to end milk quotas.
professional and competitive farms in
“From 1 February when he takes up his new post he will go to
the UK are well placed to capitalise
consultation on CAP reform. He wants time to develop his ideas. 2010
on the opportunities. But businesses
will be a year of ‘making time’, while 2011 will be the year of getting the
would have to learn to live with
deal done,” said Mr Wright. But there are some positive and reassuring
volatility, and he predicted that “milk
signs, he insisted. “Despite being from Romania - one of the poorest
could be more volatile than any other
‘new entrant’ member states - he has dismissed requests from other poor
soft commodity in the world”.
countries to favour them, has a broad based team of advisers, including
However new mechanisms would
one from the UK, has a perfect CV, and an impressive knowledge of the
come into play that would help iron-
subject.” His credentials are such that it is likely he will have a two term
out major price fl uctuations to the
tenure as Farm Commissioner, predicted Mr Wright, which would also
benefi t of farmers, processors and
mean that “he may not try to do too much too quickly”.
major dairy commodity buyers alike. Both Annie Graham (pictured opposite), head of brand sustainability
Such mechanisms would include agriculture and health for Sainsbury’s, and Peter Darlington of The
futures, retailer initiatives, and E-Co2 project, stressed the importance of, and benefi ts that accrue from,
contracts - such as the one Dairy Crest reducing carbon emissions over the next decade. Both also expressed the
76 THE JOURNAL FEBRUARY 2010
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