This page contains a Flash digital edition of a book.
This year the Semex Conference celebrated 25 years with the visit of HRH The Princess Royal. The event, which once again attracted farmers and industry representatives from across the UK with speakers from across the world, was a great success.


SEMEXXV


Volatility here to stay and better communication needed


Opening the conference NFU president Meurig Raymond said volatility was here to stay in the milk sector and indeed the wider farming industry. “It is something we will all have to learn to live with.”


Ake Hantoft


Mr Raymond said current milk prices were the lowest they had been for eight years, while over the same period feed costs had risen 50% and other farm costs had gone up by 36%. “I know fi rst hand just what this means with 600 cows being milked at home. We produce 4m litres a year and a 7p/litre drop in milk price will cost us £250,000 and further cuts bring that closer to £300,000. If we’d made £300,000 it might be possible to ride the storm,” he explained. However, while things were less than positive at the moment Mr Raymond said the ongoing investment in the UK by processors was good for the future. “It is encouraging to see the investment of processors in the UK, as this is essential in the drive to be more self suffi cient. There are currently 100t of cheddar cheese, 350t of soft cheese and 100t of butter being imported in to the UK. More has to be done to get major retailers to support British dairying.” Trust and commitment are needed across the supply chain to ensure a positive future for British dairying, he added.


Danielle Pinnington


Addressing the conference Farmers For Action leader David Handley said that trust and commitment were currently missing in the industry. “Supermarket businesses do not have respect, morals or ethics and do not know the meaning of the words,” he claimed.


“What we need is transparency in the supply chain to see just where the value is going. We need to stop retailers devaluing the product and sucking the life out the industry. Retailers are using milk with other commodities to increase footfall and are cutting the price of milk to achieve this.”


Mr Handley said the industry urgently needed to get its house in order and communicate directly with consumers to showcase the work done by British dairy farmers. “No one else is going to sort out the problems of the industry except the farmers, you can’t sit and hope it will happen. “We have to create a platform for the younger generation. The industry does not hold any attraction for young people in its current state.”


Clear, positive marketing central to dairy future Positive marketing and ensuring a market for every litre of milk produced by members are the priority for Arla, according to the company’s Ake Hantoff. “Arla fi ght to fi nd a market for every litre and reduce costs by


TOP Ake Hantoft from Arla explained challenges processors face with Supermarkets.


ABOVE Discussing consumer research was Danielle Pinnington. 78 THE JOURNAL APRIL 2015


reducing central costs,” explained Ake. “Positive marketing is key and as Arla is farmer owned we promote this as well as backing British Production.” Producing a range of products is vital to creating a sustainable business, liquid milk will always be important, but yoghurt, cheese, butter and other products are vital. Mr Hantoff also acknowledged that it was vital processors have a good working relationship with supermarkets and retailers to sell their product. “However, the increase in products being sold as the supermarkets’ own brand is losing value on the product for the processor.” Commenting on current market conditions Mr Hantoff explained no matter what you are producing when output exceeds demand it affects the price. “Like any business it is natural to increase production when demand is high and prices are good. However, production has increased by 5% in Europe and New Zealand with a 4% increase in America, resulting in over production globally. “Negative affects on the market such as Russia banning dairy imports affects the price and means we have to fi nd new markets, resulting in realignment for the surplus produce,” he explained. Meanwhile, Danielle Pinnington from UK Consumer Research said quick and effective communication worked best in the modern grocery market. “Shopping behaviour has changed with people shopping more regularly and being less loyal, however, 25% more regular shoppers are staying local and supporting the local ecomony. “Discount stores apply to the whole market, not just those who have to watch their budgets. This means more transparency is needed along with positive messages and clear communication about what they are buying and they are being asked to pay more if prices are higher.


Communication must be quick and effective to work well, the Red Tractor is successful as people understand the label,” she added.


Saudi poses management challenges Managing 35,000 cows in temperatures as high as 50C presents a unique set of challenges, according to Saudi dairy manager Imad Saleh from Nadec. Originally established with 500 cows


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116