While the current volatility within the dairy sector is a challenge for dairy producers, the future for the industry is bright, said Dr Judith Bryans, Dairy UK chief executive.
Dr Bryans said opportunities were there: “We have a growing world population and demand is growing.
“We will not always outstrip supply as we are at the moment. We will need about 60 per cent more food by 2015 and milk will form part of that.”
However, Dr Bryans highlighted a number of threats which the industry had not yet taken seriously enough.
Firstly, she highlighted the rise of so-called ‘dairy alternatives’.
She said: “Alpro, which makes soya, almond, coconut and rice drinks is now the third largest milk brand as its value has soared by 28 per cent.
“These products are being marketed in the dairy space, rather than in their own separate space.”
Dr Bryans said Dairy UK fielded many phone calls from people who thought they might have a problem with dairy products and wanted advice about dairy alternatives, despite them not being dairy products at all.
“These products are being put into a space where dairy has been traditionally strong; in particular the cereal market. As an industry, we have not taken the threat posed by these products seriously enough.”
Dr Bryans also asked delegates whether the ‘snackification’ of breakfast was a threat or an opportunity.
“As breakfast moves increasingly to something which is consumed ‘on-the-run’, in the guise of items such as cereal bars, are people going to reduce consumption?
“At the moment, 40 per cent of milk is consumed on cereals. This change in breakfast eating habits could easily be a threat or an opportunity, and to make sure it is an opportunity, we want to see co-operation between the dairy and breakfast product industries.”
Source: Farmers Guardian