While world demand for dairy products is increasing 2pc year-on-year, he said there was a limited capacity for growth in dairy heartlands like the South West, while tighter water control measures are being implemented in Wales, which could constrict the sector there.

And he said these factors could create growth opportunities in East Anglia, if dairy units could strike partnerships with their arable neighbours – improving crop rotations and offering manure with potential to reduce fertiliser costs and improve soil health.

“Obviously the demand is there,” he said. “But in Wales there is an issue with NVZ (nitrate vulnerable zone) limits and in other dairy-heavy areas like Cheshire and the South West they are not going to be milking more cows, so there could be more opportunities in East Anglia.

“There is potential for joint ventures with our neighbours under contract-type farming agreements, under which the landowner would provide land and infrastructure investment and the contractor provides labour, machinery, cows and the knowhow to run the unit.

“What works well could be a 200-300 cow unit with a 60-80ha grazing platform and the requirement for 120-150ha across the whole dairy.

“Overall I am very positive for the future of dairy in East Anglia.

“Of course there are challenges, but I hope with Arla’s help, and others, we can meet our goals, supply that demand and meet our environmental targets as well.”