With water shortage fears growing across the UK, companies are re-examining their production processes with a view to reduce the waste of this valuable global resource.

“Without a rapid, effective treatment option, liquid effluent can become a costly issue to tackle.” Says Jamie George, projects & business development director at Axium Process.

While effluent composition varies with the industry, it is usually composed of microplastics, fats, oils, grease and many other unsavoury particulates. Membrane filtration is able to selectively separate these suspended solids, leaving behind high-quality water that is immediately available for reuse in upstream or downstream processes.

Eliminating the need for damaging chemical flocculants, membrane filtration reduces the risk of damage to our rivers and waterways and could potentially reveal the presence of valuable materials that would otherwise be destroyed using alternative methods.

Jamie George states “Initial pilot trials on the feed material are carried out, either at our Swansea test facility, or at the manufacturer’s premises. These are instrumental in how we identify and adjust process parameters for optimal filtration results.”

Able to provide a reliable, cost-effective solution to reducing discharge volumes with the potential to recovering up to 90% of wastewater, membrane filtration is a tried-and-true solution for water recovery needs. Plants can be constructed in a variety of set-ups, from containerised units to small, compact systems that can be moved to other areas as needed and can also be designed with future expansion in mind.

Axium’s extensive expertise allows for the design and manufacture of crossflow membrane filtration solutions tailored for diverse applications, all while adhering to international regulations and maintaining the highest of hygienic standards.

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In addition, since the end of 2018 a fixed-price model has been offered. Based on the stock market milking value, farmers can register quantities that are settled at a fixed price. Approximately 450 farmers have signed the agreement for participation.

In 2018 an above-average milk price of 34.5 cents/kg (+0.6 cent/kg compared to the previous year) was paid to the milk suppliers of the parent co-operative.

Significant investments were made last year at sites in Thalfang, Bolsward and Hünfeld. In Thalfang the construction of a new warehouse was completed and the installation of the fourth condensed milk line was prepared. In Bolsward, production of condensed milk in glass bottles started.

The Hünfeld cheese plant continued to invest in capacity expansion. In addition, initial payments were made for planning and permits for the new building in Mechernich.

The total investment in property, plant and equipment totaled €43.4 million.

“We have our strategic goals firmly in mind and continue to focus on sustainable corporate development. By restructuring our distribution, we are reducing time to market and focusing on the high-growth regions outside Europe,” says CEO Detlef Latka.

Hochwald attaches great importance to continuous and sustainable growth.

“In contrast to listed companies, we do not think in quarterly figures, but in longer-term dimensions. At the same time, our goal is to permanently achieve an above-average milk price for our producers. With projects such as the construction of a new dairy site in Mechernich in North Rhine-Westphalia, we are laying the foundation for this,” Latka says.

In May 2019 the construction of a new dairy started, which will go into operation in 2021.

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Dairy Farmers of America (DFA) topped the list in 2018, taking in 29.2 million tonnes of milk, or 3.5% of the total market share. The top three leaders – DFA, Fonterra and Lactalis – remained stable in their positions compared to the previous ranking in 2016.Arla, Nestlé and Friesland Campina were numbers four, five and six, with milk intake of 14 million tonnes each.

Saputo increased its intake by about 2.1 million tonnes milk through the acquisition of the Australian company Murray Goulburn.

Amul from India is a new entry in the 2018 top 10, in 9th place (up from 13th) with 9.3 million tonnes. This shift was driven by growing milk intake and the fact that IFCN decided to standardise milk intake from natural content to 4% fat and 3.3% protein.

Two big Chinese milk processors, Yili Group and Mengniu showed an increase in milk intake by about one million tonnes since 2016’s rankings, together taking 13.6 million tonnes of milk.

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Researchers from the Universities of Leeds and Surrey analysed the product information of 921 yogurts from UK supermarkets and found that organic yogurts and those marketed towards children in particular, had high levels of sugar. Fewer than 9% of all yogurts, and only 2% of the children’s products surveyed contained less than the 5g of sugar per 100g threshold required to be classed “low sugar” and carry a green “traffic light” nutritional label in the UK. The researchers say this warrants reformulation for the reduction of free sugars in yogurts.

Natural, ‘plain’ and Greek-style yogurts were found to have much higher levels of protein, lower carbohydrate levels and the least amount of sugar, with the average of 5g per 100g – this was largely naturally-occurring lactose.

Desserts contained the most total sugar, at an average 16.4g/100g, which is more than 45% of recommended daily intake, while organic yogurts were found to have the highest average sugar content at 13.1g per 100g. Products in the children’s categories also scored high in sugar content at an average 10.8g/100g.

“Items labeled ‘organic’ are often thought of as the ‘healthiest’ option, but they may be an unrecognised source of added sugars in many people’s diet,” said lead author Dr. Bernadette Moore, from the School of Food Science and Nutrition at Leeds.

Study co-author Annabelle Horti explained that sugar is added to counteract the natural sourness from the lactic acid produced by live cultures in yogurt. These cultures are higher in organic yogurts which, she says, may explain the higher sugar content to offset the sour taste.

“In the UK, on average, children eat more yogurt than adults, with children under three years old eating the most. It can be a great source of protein, calcium and vitamin B12. However, we found that in many of the children’s yogurts, a single serving could contain close to half of a child’s recommended daily sugar intake, and the portions were the same size as an adult’s,” said study co-author Dr. Barbara Fielding, from the University of Surrey.

“Retailers could play a positive role in promoting health by establishing boundaries for lunchbox recommendations and clearly labeling the amount of added sugar,” she added.

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The Ice Cream Alliance provides a few facts about our favourite frozen treat. For example, on average, each person in the UK eats nine litres of ice cream every year. This sounds a lot but the Scandinavians eat more with the Americans topping the chart at 20 litres per year. However, nobody beats New Zealand, which consumes more ice cream per capita than any other country, with an average of 28.4 litres per person, per year.

The United Kingdom was one of the most prolific consumers of ice cream in Europe during 2015, with about 275,000 metric tons of ice cream were sold in the UK, just behind the 440,000 metric tons sold in Italy. Germans consumed more ice cream than any other European nation, at 560,000 metric tons.

There are more than 1,000 companies in the UK producing ice cream in hundreds of flavours as well. So, a lot of products to get through on these very hot days.

Ben & Jerry’s seems to be at the top of the tree, with around 7.7 million people eating it in the UK, according to reports. And, those lucky employees get to bring home three tubs of ice cream per day, according to the website. Further, it’s good for the dairy industry, as it takes 11 litres of whole milk to make one gallon of ice cream.

A win-win all around.

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The company reported a pre-tax profit of £7.1 million (€8.09m), versus a £1m pre-tax loss in 2016 for the period which was driven in part by, an ongoing focus on cost control and efficiencies, and leveraging the resources and scale of the Ornua Group. The company’s sales volumes remained stable, however the value of sales increased to £319m (2016: £286m) reflecting the impact of significant market price inflation during the period and the continued growth of both the Pilgrims Choice and Kerrygold brands.

During 2017, the company says that it continued to make a high level of capital and marketing investment. Capital expenditure included further investment in cheese packing technology, energy reduction projects and ICT control systems. In addition, the business continued to invest heavily in multi-channel marketing campaigns for both its Pilgrims Choice and Kerrygold brands. The level of investment in staff training and development was also significantly increased during the year.

Commenting on the 2017 results, Bill Hunter, managing director of Ornua Foods UK comments, “Our improved financial performance reflects our focus on delivering quality, customer service excellence and innovative ways of working for our major UK retail customers.

“We believe that the ongoing investment planned for the current and future years in both our state-of-the-art packing facility in Leek and our Pilgrims Choice and Kerrygold brands will continue to give the company a competitive advantage in the marketplace.”

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Statistik Austria’s preliminary figures for the dairy sector for 2017 show exports of €1.18 billion (+4.7%) and imports of €781 million (+8.6%), which represents a positive export balance €402m  for the year as a whole (-2.1%).

A quarterly analysis shows that, especially towards the end of the year, a significant improvement has taken place, as the last quarter showed an improvement in the foreign trade balance of +11%.

The Austrian dairy industry’s main foreign trade product is cheese, with 142,000 tons exported for €576m at an average price of €4.07 per kg, while 113,000 tons were imported for €447m (average price €3.97 per kg).

The second most important product category is liquid milk and dairy products. Here, exports generated €305m, while €82m was spent on imports.

Foreign trade in whey products resulted in exports of € 97m and imports of € 48m.

The most important foreign trade partner for Austria is Germany, where goods amounting to €604m (51% of total exports) were exported, while imports amounted to €477m (61% of total imports). The second most important trading partner is Italy with exports of €223m (19% of total exports) and imports of €77m (10% of total imports). The Central and Eastern European countries had exports of €91m and imports of €34m.

Approximately 90% of exports were with EU countries and about 10% with third countries, of which the most important were Australia, China and Switzerland. In total, dairy products were exported to 101 countries.

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Sophie Medlin, a dietitian and lecturer in Nutrition and Dietetics at King’s College London, suggests that this is a result of fad diets, presumed intolerances and a preference for what they perceive are ‘healthier’ plant-based alternatives. She predicts a generational health crisis of osteoporosis and poor health in the future should this trend continue. “Many teenage girls are completely unaware the majority of calcium needed for good bone health is stored in the body during your early years, and your opportunity for strengthening bones ends after the age of 30. Iodine is also critical for a functioning metabolism and proper growth and development. Cows’ milk is one of the richest sources of both in the UK diet.”

A fifth (19%) of teenage girls surveyed blamed an intolerance to lactose for their avoidance of cows’ milk. However, the Food Standards Agency reports that the actual proportion of Brits who suffer from true lactose intolerance is as low as 5% – meaning there could be something else at play.

New clinical research published in the UK Nutrition Journal last year suggests an alternative cause for those who report issues with dairy – it could be the A1 protein triggering their symptoms, not the lactose. A simple switch to a cows’ milk that is naturally free-from the A1 protein, such as a2 Milk, could be the answer.

Medlin says: “A number of people misdiagnose themselves with lactose intolerance when there is some evidence that it could be intolerance to the A1 milk protein. There is an increasing body of research to show that those who previously thought they couldn’t drink milk because of lactose, may be able to tolerate milk containing only the A2 protein. I would always prefer to recommend a dairy milk over a calcium fortified alternative due to the abundance of nutritional benefits that are particularly pertinent to the health of teenagers.

Only 16% of 18-35 year olds who had given up cows’ milk had done so as a result of talking to a health care professional such as a dietitian or a GP. This compared to a whopping 41% of that age group who cited friends and family, celebrities, bloggers and social media as the influences for such an important dietary change.

Medlin says: “The current fashion for eliminating key food groups, promoted by the new generation of online influencers who have adopted dairy free diets for themselves, is concerning and without proper guidance could lead to many negative health consequences.”

Last year, The National Osteoporosis Society announced new research suggesting under 25s are much more likely than any other age group to be following health, diet or nutrition bloggers on social media. ‘Dairy-free’ is now seen as a buzz word as more online influencers than ever before are promoting dairy free recipes, leading to concern from health professionals over their influence on young people’s eating habits.

This latest research showed that out of the teenage girls who had ditched dairy, 1 in 5 (21%) said it was because they prefer alternative drinks such as almond milk, or think they are healthier than the real thing – but this could not be further from the truth. Often, these drinks are filled with a long line of additives and emulsifiers, as well as artificial nutrients that are not easily absorbed by the body. And some almond milks can contain only 2% almonds! That’s around 6 almonds per litre.

Worryingly, a quarter of respondents aged 18-35 (25%) choose the least nutritionally beneficial alternative – coconut milk. The average carton of coconut milk contains nearly twice as much fat as other alternatives and over five additives.

With a recent study by the University of Surrey showing that the popular plant-based milks on the market had only around 3% of the iodine content of cows’ milk, any nutritional benefits claimed to make the case for alternative milks are difficult to prove.

The research was undertaken by Opinium on behalf of a2 Milk.

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The 2015 World Economic Forum report cited the global water crisis as the biggest threat that our planet will face over the next 10 years, dairy processing giant GEA reports. From droughts in the world’s most productive farming regions to the lack of access to safe water for billions of people, water crises will affect the populations and economies of both the developed and developing nations. In fact, figures from UN-Water suggest that by 2025, two thirds of the world’s population could be living under conditions of water stress, and 1.8 billion people will be living in countries or regions with absolute water scarcity.

Where does that leave dairy processors, who use a fair amount of water in the production of dairy products? Well, if you’re like my household, you’re developing ways to economise with water, including water collection units on drainpipes and faster showers.

On the dairy processing side, a food manufacturer has installed a zero-water dairy processing plant in Mexico, which saves 1.6 million litres of water per year. This manufacturer is now investing in another zero-water milk plant in the US, which it projects could save some 63 million gallons of water every year. During 2015, the firm’s factories — in every product category, not just dairy — withdrew 41.2% less water per tonne of product than they did 10 years ago. This is just one example of many efforts by dairy producers to keep water use minimal.

So, the time to start conserving water is now. With 70% of the consumption being used in agriculture, we are at the sharp end for water use.

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So, on to this year. Climate change, despite the insistence of some in certain governments, is here to stay, and the increased costs will be borne by the dairy industry. New Zealand dairy giant Fonterra has just welcomed the New Zealand government’s latest move to address climate change, including its plans to establish a Climate Commission.

Carolyn Mortland, Fonterra’s director of sustainability says the co-operative is committed to engaging with the government on the development of a robust Zero Carbon Act, which represents the interests of all stakeholders.

New Zealand, like a lot of other nations, is seeking to become a low carbon economy, and dairy, of course, is a big part of that. Dairy UK here in the UK offers tools online such as the Environmental Benchmarking Tool, which helps members monitor and improve their performance and allows users to benchmark their performance with complete anonymity from others in the industry. The efforts appear to be working: recently published results from the Environment Agency in the Climate Change Agreement biennial progress report show that the dairy sector has achieved an 18.05% energy efficiency improvement since 2008.

With this improvement, the sector has already exceeded the 2020 Climate Change Agreement and Dairy Roadmap targets of 13.6% and 15% respectively, Dairy UK reports. There has also been a 30% shift in the destination of waste away from landfill and towards recovery or recycling in the UK.

All to the good. Here’s to a better climate for 2018.

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Researchers found drinking non-dairy alternatives was associated with shorter childhood height compared to those who drank milk, among 5,000 Canadian children.

In fact, children at age three who drank three cups of non-dairy milk alternatives each day were 1.5 centimetres shorter, on average, than their milk-drinking peers. The researchers suggest that the children drinking non-dairy alternatives may be shorter because they are not receiving enough protein or calories to support their growth, the website MilkPep reports.

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While the Federal Statistical Office reports 2.7% fewer milk producers in all Germany, the structural change on the producer side in North-Rhine Westphalia is drastic 8% less dairy farmers compared to the previous year. But there is optimism among those who continue.

“Milk production must be more dialogue-oriented,” says Hans Stöcker, chairman of the organisation Milch NRW.

“As a family business specialising in milk production we are looking forward to the future, because the combination of economy, sustainability and animal welfare has been with us for generations.”

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As a result of the lower supply, Swiss processors produce primarily fresh products such as drinking milk or yogurt in the summer. Durable products such as butter, on the other hand, are increasingly produced in the spring. when the organic milk supply is large, and then put into storage.

But it is different this year. According to the organic farmer’s association Bio Suisse, the inventory currently amounts to less than 30 tonnes. In the same period in 2016, there were almost 250 tonnes.

Availability of organic butter at the end of August is being questioned by Bio Suisse, while the remaining organic milk products are not affected by a bottleneck.

Switzerland’s largest milk processor Emmi is currently investigating alternatives to supply consumers – either import or get more organic milk in to produce butter. Displacement milk can come from farm that have changed to organic production, but still sell the milk through the conventional canal.

Organic foods are on the fast track in Switzerland. Bio Suisse reports annual growth figures of an increase in organic food sales by 7.8 % in 2016, and sales hit a high of CHF2.5 billion (€2.2bn). For dairy products, the organic share is now 12.6%.

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Magnum grew at double-digit rates, helped by the new Magnum pints that deliver the ultimate chocolate and ice cream experience in a tub, as well as the coconut and raspberry variants. Unilever also extended its less than 50 calories offering under Solero and launched vegan and gluten-free variants under Cornetto.

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Several reports have been stating that the Canadian authorities would be giving 60% of the cheese TRQ agreed under CETA to the Canadian cheese manufacturers. The allocation to the Canadian cheese manufacturers would threaten the access of the EU cheeses to the Canadian market.

Alexander Anton, EDA secretary general, says, “The CETA Declaration on TRQ administration states that: ‘the general principle is that tariff rate quota administration should be as conducive to trade as possible. More specifically, it must not impair or nullify the market access commitments negotiated by the parties; it must be transparent, predictable, minimise transactional costs for traders, maximise fill rates and aim to avoid potential speculation.’ The allocation of the TRQ to the Canadian cheese manufacturers would not be in accordance with these principles.”

Anton adds, “We are aware that there has been a lot of internal pressure in Canada from these groups to administer the cheese quota. However, we do not find it acceptable that the quota would be used as compensation to the Canadian dairy sector for the market opening agreed under the CETA.”

For EDA, the preferred system would be a combination of allocation to historical importers, while offering also opportunities for new importers, based on strict eligibility criteria combined with a fair and accurate activity test and on a request of import license for the TRQ.

“With this scheme, we question the commitment of Canada towards free trade”, concludes Anton. “We have seen the raising of more technical barriers, such as the implementation of the Class 7 pricing system, which changes the spirit we thought we were engaging in with the CETA.”

EDA has called the Commission to oppose this system and the allocation of 60% of the cheese TRQ to Canadian cheese manufacturers and request that the Canadian authorities to offer a fairer system for the TRQ management.

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Investments last year amounted to €47 million, in its Bolsward plant for ready to drink products. In addition, investment was made in further expansion of the cheese factory in Huenfeld and the completion of a new plant for demineralized whey powder in Huenfeld and the related sewage treatment plant.

The dairy markets in the EU and Germany have consolidated at the beginning of 2017. While prices for fat continue to rise, the market for skimmed milk powder (protein) remains unchanged.

The focus is now on the implementation of the ‘Hochwald 2020’ strategy at the company.

“Turnover of the Hochwald Group will increase in 2017. We are working hard to implement the strategy ‘Hochwald 2020’, which will sustainably improve the milk price for our cooperative members”, says CEO Detlef Latka.

The strategy ‘Hochwald 2020’ is based on the strengthening of the cooperative model. The goals of social responsibility, technology optimisation, focused internationalisation, portfolio development and organization and governance are an integral part of the new orientation of the Hochwald Group, the company says.

Investments are financed in part by a capital increase in the form of a contribution, which the shareholder’s meeting had decided to collect. It begins with the retention of part of the milk payment supplement for the year 2016.

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At any rate, British cheese exports have expanded, mostly to the European Union, the AHDB reports. The plant in question is at the heart of the Brexit conundrum, processing both British and Irish cheeses for a very cheese-hungry public here in the UK. I don’t think people will abandon their favourite cheddars just because of some legal issue, but it may impact on what kind of imported goods we see for reasonable prices over in the UK. The law of unintended consequences is active here with Brexit and will continue for a long time, and dairy will be seeing it right at the heart – labour on farms, the Irish border, any EU grants, inputs and of course, on-shelf.

In some ways, what Brexit is doing is making us more susceptible to the whims of an elected government here in the UK. Theresa May’s hanging on by the fingernails tenure is not exactly sympathetic to the plight of dairy, due to having many things on her plate. However, in the EU you can usually get a good hearing for farmers and agriculture from Phil Hogan. Again, it is down to size. The European Union knows its primary output is the vast array of food products, and dairy is part of that. Let’s hope the UK government gets the same idea soon.

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The seminars will provide insights into topics including: dairy’s relationship with cardiometabolic health, obesity and healthy ageing (muscle and bone health). The Dairy Council will distribute a series of new reports and factsheets for health professionals at each event.

Dr Anne Mullen, director of nutrition at The Dairy Council, says, “The role of milk and dairy foods in leading a healthy balanced diet is all too often misunderstood – but the evidence is well-substantiated and it’s gathering strength.

“We therefore wanted to host a series of seminars to engage with health writers and health professionals across the country, and to offer a platform to translate the science and debunk the nutritional myths.

“We’ll be drawing on the very latest research being carried out in the field and will provide some insights into the role of milk and dairy and life-long health. Milk and dairy matters at all stages of life and can help in addressing a number of public health concerns. Throughout the month we will take a look at the latest evidence, address the myths head on and offer some translatable evidence-based information.”

All seminars in this series are CPD endorsed by The Association for Nutrition and have been backed by AHDB Dairy.

The events are free to attend. To register please contact events@dairycouncil.org.uk.

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Mark Allen, chief executive of Dairy Crest, notes, “Our key brands are performing well. Cathedral City remains the nation’s favourite cheese and following its brand refresh at the start of the year, the good progress and momentum we have seen in the last six months has continued in the new financial year. Our overall spreads market share has increased, and Frylight had another outstanding year with sales growing 19%. This is well ahead of the market. The ongoing investment that we are putting behind our brands gives me confidence that we can grow market share.

“We have continued to make good progress in our demineralised whey operations at Davidstow. We are now hitting our targeted level of infant formula grade. Developing our sales of demineralised whey and GOS into the high-margin global infant formula market will be a key priority this year. At the same time, we will continue our research into other potential animal and human applications for GOS.

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Michel Nalet, the president of the European Dairy Association, noted this contrast. “At a time when the European ideal seems to lose its appeal in some parts of the population, the 60th anniversary is a reason to deepen European ties,” he says.

He addressed ideas such as the Common Agricutlural Policy and the issue of free movement of people and goods. “I am not convinced the European single market always works as it should, but this is where it should be strengthened at member and state levels,” he notes. “Juncker’s scenarios all show that a single market is key for the future of Europe, especially dairy. We have a strong base of 500 million EU citizens. We believe in Europe, and particular in rural Europe for dairy. Vive l’Europe!”

Wim Kloosterboer, corporate manager of trade and dairy affairs for Dutch dairy  FrieslandCampina, introduced the session, ‘Better functioning of the food supply chain – uncorking the potential of the single market.’ “We are most interested in the free flow of goods throughout Europe, and bringing prosperity to more than 500 million consumers,” he notes. “We have new challenges, but maybe we can transform these challenges into something beneficial for businesses.”

Antti Ilmari Peltomäki, deputy director general of DG Grow (Enterprise and Industry Directorate General, EU Commission) discussed how the food industry in Europe plays a large part in European growth, as it provides 31 million jobs for Europeans, has €4 trillion in turnover and amounts to €100 billion in exports. “It also has a huge social dimension, as it offers jobs in remote places where other opportunities don’t really exist,” he notes. “Food is close to everyone’s mind, mouth and stomach, and it’s part of our cultural identities. And, our starting and end point is the single market.”

He did warn that although there are no longer tariff barriers, there are national restrictions that can impede the free flow of products. “There is an increasing number of national regulations about food, and there are many different arguments, such as providing consumers with meaningful information. The cost/benefit ratio has to be balanced.”

The work programme for 2017 has as its key topic strengthening the single market for food, as well as discussing the issue of labelling. “It is a hot topic,” Peltomäki reports. “We are exploring the issue of unfair trading practices in the supply chain and the effect on food pricing. We are also looking at barriers and how to address them.”

He says 2017 is a special year, both for the anniversary of the Rome Treaty and for Brexit. “We have to reconsider what the priority is for the remaining 27 states, and identify the elements of value for the future, and what our reasons are for sticking together.”

Gilles Morel, the chair for FoodDrinkEurope, points out that the idea of a single market shows aspiration. “The dairy sector has been a pioneer in cross-border traffic, and the food sector is the number one manufacturing segment in Europe. We also have the safest food market in the world.”

Food amounts to 11 per cent of EU employment, but it faces challenges, as growth has been more difficult in recent years. “The single market is responsible for the sustaining of the supply chain,” he says.

Keeping the supply chain fair across Europe is important, he notes. “We have to take a holistic view, otherwise it will impact negatively. The EU has embarked on several supply chain initiatives for tackling the issue of supply, and to ensure the single market operates fairly.”

However, food and drink continues to be a top priority, as it is an export leader, Morel says. “There are not many industries with a trade balance globally.” Its prominent position means it can sometimes be held hostage, as with recent Russian embargoes. “It is a zero sum game: prices increase and quality declines,” he says.

Another contentious issue is labelling. “Let’s make sure we have an EU labelling scheme, so as not to create complexity and cost for consumers. We have to avoid the proliferation of front of pack labelling. Voluntary labelling is one thing, but it’s a problem when it’s used to fragment the single market,” Morel warns.

Differing veterinary standards in member countries can also be used as protectionism, he states. Kloosterboer concurs, noting that the difference in veterinary regimes in the 28 member states is hampering trade. “It has proved to be one of the trickiest trade and policy issues, and we should look at doing better.”

On the issue of Brexit, Morel says bluntly, “I don’t think the European Union is ready. The EU exports 2.5 times more than we import from the UK, and it amounts to €40 billion in exports.”

He also states that 2017 must be “a year of change. We have made shifts, which we wouldn’t have made years ago, but there must be prosperity through the supply chain. We need to create the right environment, to grow and increase added value to every actor in the chain.”

After Brexit

The future of the single market for dairy was the topic of the second session. Daniel Dalton, MEP for the European Conservatives and Reformists Group, UK, spoke about the impact of Brexit on agriculture and dairy. “First, the UK is going to leave the EU and leave the single market. Where does that leave dairy? This industry is as connected an industry to the European market as we can have. On the land border between Northern Ireland and Ireland, around 800 million litres of milk per year passes back and forth, and we want this to continue as smoothly as possible. I am worried,” he confesses.

He does not think there will be tariffs applied to products, but notes that there are now significant non-tariff barriers. “There are different regulatory systems in different countries, and no-one likes being overruled from Brussels,” he says. “Some non-tariff barriers are there to keep other countries out, and this drives anti-European feeling. Also, many people feel that big businesses benefit from the EU, and not the smaller operations.”

He says that right now, laws are similar in the EU and UK, but in the future, they may diverge, as for example, in the area of GM crops. “In five to ten years, how do we deal with products that are different from one side to the other?” he wonders.

“There are three ways we can deal with problems, especially in dairy and agriculture,” Dalton says. “These can be packaged as free trade agreements, which will be much deeper than others before them. Security, intelligence, financial – we will have to have a deeper relationship with the European Union that is more like a strategic partnership.”

For European market integration, there will be three points, all of which are challenging. “The first will be mutual recognition of regulatory standards, in areas such as public and animal health. It is key to keeping the market together,” Dalton says. “The second is to set up a customs facilitation agreement on land borders such as Northern Ireland and cross-Channel borders, as to not have this a huge detriment to trade. This is very important. The third is the UK wants free trade agreements with other countries, so it has to come out of the customs union. There has to be strict rules on rules of origin, and enhanced recognition of the rules.”

Ireland came up in questioning. Dalton said, “The Irish issue is a big challenge, as it is now operating as one market in dairy. We have to have some flexibility on this.” The mutual recognition of standards bodies may become crucial, as Ireland is very dependent on international exports.

For example, skim milk from Northern Ireland is sold to an Irish multinational that ships powder to China, he points out. “In two years’ time, will Northern Irish milk still be acceptable?”

In the end, agriculture is one of the most difficult areas in trade, Dalton admits. “I have no idea where we’ll end up, but we want to make sure it works.”

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