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Farmers must fight united

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It is not unknown for farmers in some of our continental neighbours to take to the streets or use tractors to blockade our roads. It is less common in this country, but that stereotype was shaken up this summer, when the West Country's green and peaceful countryside was filled with images of anger and desperation.

Outraged at two cuts to the farm gate price of milk in quick succession, thousands of dairy farmers decided enough was enough and began protesting outside the processors and supermarkets they supplied.

It was a watershed moment, showing both the serious need for long-term change and the power of the dairy industry working together. I'm pleased to say that in the end all sides came together to find a solution. Farmers and processors agreed on a code of conduct on contracts, and retailers and processors began injecting more money down the supply chain. These were massive steps forward, in no small part down to my predecessor, Jim Paice, who brokered the deal on the code.

Now we need to reshape the industry for good.

Dairy is the country's biggest agricultural sector – South West farmers alone produce more than one million tonnes of milk a year – and has huge opportunities to grow.

We're already self-sufficient in liquid milk in the UK, but despite having the expertise, climate and work ethic, we import half our cheese, butter and yoghurt. That's £1.2 billion worth of dairy products which we could make ourselves. Moreover, with the world's population soaring and people in emerging economies adopting more Western diets, there are huge consumer markets crying out for dairy. Environment Secretary Owen Paterson has just returned from China, the world's biggest grocery market, where he saw just how big the opportunities here are.

But we can't rest on our laurels – New Zealand and Australian dairy products are already filling the shelves in Chinese supermarkets. While the potential market and appetite for British-made food is enormous, there's nowhere near as much British dairy on sale overseas as we'd all like to see.

I'm convinced that one of the ways to change this is by better collaboration across the industry, so yesterday I launched two new initiatives.

Firstly, I'm opening applications for grants from a £5 million Dairy Fund to help English dairy farm businesses become more competitive and access new markets. The funding, first announced by the Prime Minister in July, will help groups jointly invest in technology or set up new groups or co-operatives. There will also be cash for dairy farmers to develop marketing and business management skills.

Secondly, we're consulting on new rules allowing English dairy farmers to come together and negotiate collectively over the sale and price of their milk.

In a completely new way of doing things, potentially large numbers of producers – up to a third of the market – could form elect representatives and sell their milk en masse to a particular processor. Rebalancing the market would mean producers could have more say over their contractual terms, conditions and prices, rather than as individuals with less power.

After such a difficult summer, I have been heartened to hear of the positive progress on contracts and prices, and these changes are down to the fact that the entire industry sees the value in working and investing together.

There are some great examples of this already happening, such as the Isle of Wight dairy group where 17 farmers have come together to process and market their milk to the local area through deliveries and shops.

The dairy industry's got a bright future and now I want producers to come forward and grab the opportunities with both hands. There's a whole world out there for the British dairy industry to conquer.

Farmers must fight united


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