In his New Year message, Michael Oakes highlighted the importance of growing dairy exports in 2023, the work of the Dairy Roadmap and the need for financial sustainability.
“I don’t think anyone could have predicted how 2022 has gone for the dairy sector,” the West Midlands tenant farmer said.
“We have seen milk prices head towards 50ppl, and costs of production reaching similar levels, with almost hourly changes to input costs.”
The NFU anticipates that in the medium to long-term, dairy demand around the world will keep growing, but milk production will not keep up.
“This is why we have spent a considerable amount of time in 2022 pushing forward our dairy export strategy, with the ambition to double our dairy exports in the next 10 years,” he said.
Last year, UK dairy exporters sold £1.4 billion of goods to 135 countries across Europe, North America, Asia and the Middle East.
Mr Oakes said British dairy farmers produced “safe, sustainable and high-quality produce” for UK consumers and for emerging export markets around the world.
He added: “Building exports takes time, but this work will continue into 2023, and we are pleased to have built a strong rapport with the Department for International Trade during the past year.
“This will help us work with the wider dairy industry to drive forward and grow dairy exports, while ensuring we do not undermine our domestic production.”
Another agenda the NFU predicts will continue at pace over the course of this year is the issue of sustainability.
In his New Year message, Mr Oakes said the pressure from consumers and the supply chain on the dairy sector would continue to grow, and farmers had to rise to the challenge.
“Fortunately, the work of the industrywide Dairy Roadmap helps to put us in a good position to respond to a lot of these questions, demonstrate best practice and prepare for the future.”
However, the sector also needed to ensure its financial sustainability, he said, with 2023 seeing a key piece of work to improve dairy contracts move forward into legislation.
“To support this work, we are also focusing on farmer collaboration to improve relationships in the supply chain,” Mr Oakes explained.
“There will be more challenges ahead, but the NFU will continue working hard on your behalf to ensure the best future for our dairy farmer members.”