The UK dairy sector has reduced its carbon emissions by 28 per cent since 2000, according to data released this week by Dairy Energy Savings (DES), the dairy industry’s climate change watchdog. The reduction amounts to cuts of almost 75,000 tonnes of carbon a year over the past 12 years.

In the 12 months up to February, the UK has cut carbon emissions by a further 2 per cent and made 2 per cent improvement in energy efficiency, according to DES. The DES was set up in 2000 to administer the Climate Change Agreement for the UK dairy sector.

The dairy sector met its first target under the agreement in 2010, achieving higher emissions reductions than mandated under the CCA. The second target, which will aim to secure further reductions in emissions, is currently being negotiated and will be implemented between 2013 and 2020.

Commenting on the 2012 reduction, which saw the UK remain on track towards lower emissions when new targets on carbon reduction come into effect, DES Chair Gerry Sweeney said, “The CCA has been a great success and these results show yet again that the scheme continues to drive improvement in the dairy sector. The industry continues to take its environmental responsibilities very seriously and is maintaining momentum in pushing for further improvements.”

In further good news for UK dairy farmers, following the £1bn UK shortfall at farmers’ expense over an 18 month period from 2010 into 2011, competition between processors means demand for raw milk is increasing, although prices are still being unfairly dictated by processors and retailers.

Mansell Raymond, chair of the NFU’s Dairy board, today told a meeting of the European Commission’s Dairy Advisory Board that, “According to Kite Consulting figures commissioned by Dairy Crest Direct, cost of production for the current year to March 2012 is forecast to be 32.30 pence per litre (ppl), which means a break even milk price of 29.33ppl. This data coincides with the latest Defra average farm gate milk price for January of 28.84ppl, which means farmers are still being forced to produce at a loss.”

Mr Raymond said that the collapse of two dairy processors in the last fortnight serve as a stark reminder of the intense competition in the market, however, he warned any retailers or processors tempted to cut farm-gate prices to fund their price wars that farmers now have other options, and in most cases will not stand for further price cuts which go against the trend towards profitability in the wider sector.

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