Strategy for the UK Dairy Industry


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Dairy Farmers of Britain


Book Description

The demise on 3 June 2009 of Dairy Farmers of Britain (DFB) resulted in substantial losses for its 1,813 farmer members. It also resulted in more than a thousand job losses. A market crash was avoided, thanks to the positive response of - among others - the receivers, the Department for Environment, Food and Rural Affairs (Defra), the Welsh Assembly Government, and, in general the dairy industry itself. The Committee believes the way in which DFB pursued its vertical integration strategy was over-ambitious. No single factor caused the demise of the DFB although the purchase of Associated Cooperatives Creameries (ACC) for a total of £81 million in 2004 had lasting repercussions. They are satisfied that DFB did not fail because it was a co-operative. However, its failure draws attention to a number of ways in which UK dairy co-operatives could be strengthened. Defra should be offering advice and assistance and they are urged to set up a task force comprising the Financial Services Authority, members of the banking community and industry representatives to investigate ways to overcome constraints on capitalising agricultural co-operatives. Defra must also raise with the Treasury the need to ensure that farmers are not taxed on money that is only notionally paid out to them and actually retained by their co-operative. They also recommend that Defra produce a report examining governance and capital raising arrangements in successful co-operatives overseas. The collapse of DFB also draws attention to the urgent need to update insolvency legislation as it applies to co-operatives.




EU proposals for the dairy sector and the future of the dairy industry


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The Environment Food and Rural Affairs Committee reports that the European Commission's proposed package of measures for the dairy sector is not sufficient on its own to redress the problems facing the UK industry. It warns that farm-gate milk prices remain below the average cost of production and calls on the Government to set out its strategy to improve the state of the UK dairy sector. The MPs call on the Government to ensure that UK dairy farmers are offered written contracts by processors that specify either the raw milk price or the principles underpinning the price, the volume and timing of deliveries, as well as duration of the agreement. The Committee also argues that the forthcoming abolition of EU milk quotas coupled with growing global demand for dairy products creates a significant window of opportunity for UK dairy production. The Committee supports the European Commission's proposal to allow dairy producer organisations to jointly set prices but warned that without greater safeguards this could lead to competitive distortions. In addition, the Committee calls on DEFRA to promptly establish its position on large-scale dairy farming. DEFRA should also provide greater support for innovative research and development in the dairy sector that is focussed on novel uses and processes that add value.




Strategic Behaviour and Market Deregulation in the UK Dairy Sector


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Focusing on the UK dairy sector, this paper aims at identifying regime shifts by analysing price transmission occurring at each stage of the vertical process lying between consumers and producers ex ante and ex post industry deregulation. The outcome demonstrates that trade liberalisation will lead to strategic behaviour on the part of both incumbents and potential industry entrants. This will result in new collusive arrangements being made or, alternatively, the outright 'cannibalisation' of incumbent firms in a drive to retain or gain market power. The analysis employs a Bayesian Vector Autoregression system which is estimated in a time-varying parameter framework using the Kalman filter. The out-of-sample forecast accuracy of the model is compared with that of forecasts from a random walk without drift; results are interpreted with the aid of impulse response functions and variance decomposition.




The German Dairy Sector: Internationalization – Competitiveness – Supply Chains


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Die Milchwirtschaft ist gemessen am Umsatz die zweitgrößte Branche des deutschen Agribusiness. In den letzten Jahren ist sie durch eine starke Liberalisierung geprägt gewesen, wodurch sie sich einem verschärften Wettbewerb, sowohl im inländischen, als auch auf ausländischen Märkten gegenüber sieht. Gleichzeitig steigen die Anforderungen von Seiten der Politik und Gesellschaft, beispielsweise in Hinblick auf Umweltgesetzgebungen und die gentechnikfreie Fütterung. Die Dissertation untersucht vor diesem Hintergrund sowohl quantitativ als auch qualitativ, wie sich verschiedene Faktoren auf die Milchproduktion in Deutschland auswirken, und leitet hierauf aufbauend zukünftige Entwicklungen ab. In Hinblick auf das sich ändernde Wettbewerbsumfeld untersucht die Dissertation die internationale Wettbewerbsfähigkeit der deutschen Milchwirtschaft mit Hilfe der Analyse von Außenhandelsdaten. Darüber hinaus werden die in der deutschen Molkereiwirtschaft vorliegenden Internationalisierungsstrategien identifiziert und deren Einfluss auf den wirtschaftlichen Erfolg mit Hilfe von Paneldatenanalyse auf Basis von Jahresabschlüssen von Molkereiunternehmen analysiert. Aufbauend auf den Ergebnissen werden Chancen und Risiken, sowie Möglichkeiten der Umsetzung eines potenziellen Markteintritts in den brasilianischen Milchmarkt analysiert. The German dairy industry is the second largest sector of German agribusiness in terms of turnover. In recent years, it has been characterized by a strong liberalization, which means that it is facing increased competition, both on domestic and foreign markets. At the same time, the demands from politics and society are increasing, for example with regard to environmental legislation and GMO-free feeding. Against this background, the dissertation examines both quantitatively and qualitatively how various factors affect milk production in Germany and derives future developments on this basis. In view of the changing competitive environment, the dissertation examines the international competitiveness of the German dairy industry by analysing foreign trade data. In addition, the internationalization strategies present in the German dairy industry are identified and their influence on economic success is analysed by means of panel data analysis based on annual financial statements of dairy companies. Based on the results, opportunities and risks, as well as possibilities of implementing a potential market entry into the Brazilian dairy market are analysed.




The Business Success Guide to Dairy Farming


Book Description

Unlock the secrets to thriving in the dairy farming industry with "The Business Success Guide to Dairy Farming." This comprehensive guide is your ultimate resource for mastering every aspect of dairy farm management and achieving unparalleled success. From the basics of dairy production to advanced business strategies, this book is designed for both aspiring and experienced dairy farmers looking to enhance their operations and profitability. Discover proven methods for optimizing dairy farm performance, including strategies for effective herd management, cutting-edge breeding techniques, and efficient feeding practices. Learn how to implement sustainable farming practices that not only increase milk yield but also promote animal welfare and environmental stewardship. With detailed insights into the latest technology and innovations in dairy farming, you'll be equipped to stay ahead in a competitive market. Explore essential business principles tailored specifically for the dairy industry, such as financial management, marketing strategies, and risk assessment. This guide offers actionable advice on streamlining operations, improving cost-efficiency, and expanding your market reach. Whether you're looking to scale up your dairy farm or fine-tune your existing practices, this book provides valuable tools and resources to drive your success. Packed with practical tips, case studies, and expert advice, "The Business Success Guide to Dairy Farming" is an indispensable tool for anyone serious about excelling in dairy farming. Elevate your dairy business to new heights with strategies that are proven to work and insights that are critical for achieving long-term success. Seize the opportunity to transform your dairy farming business today. GET YOUR COPY of "The Business Success Guide to Dairy Farming" and start your journey towards becoming a leader in the dairy industry. Don't wait-your path to dairy farming excellence begins now.




Dairy Farmers of Britain


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Incorporating HC 971-i-iv, session 2008-09




The voluntary code of practice in the dairy sector


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Dairy farming is of considerable economic and social importance to Wales, accounting for a third of all agricultural production by value and employing thousands of people. The dairy industry in Wales has an estimated total economic output of about £420m, one third (30%) of all Welsh agricultural production. There are 1,901 dairy farmers in Wales who produce 1.5 billion litres of milk per year, 12% of the total UK milk volume. The 224,000 dairy cattle in Wales constitute about 12% of the UK dairy herd. Long-standing cost pressures on dairy farmers came to a head in a crisis in summer last year, 2012, when processors announced a series of milk price reductions to be implemented at short notice. The Committee's key conclusions are: (i) The new voluntary code of practice is an important step forward to redress the balance in the contractual relationship between dairy producer and purchaser; (ii) The Committee urges all dairy processors who have not yet signed the voluntary code to do so; (iii) The code must be given time to work; (iv) Should the voluntary code fail, the UK Government must legislate for a statutory code of contracts.