With the launch of a policy document at its annual conference, the NFU is calling on processors, retailers and farmers in the dairy industry to contribute to a consultation on the future of the sector. The discussion document outlines the union's vision for the future of the sector, with the aim of developing an overarching 'Strategy for the British Dairy Industry'.

The discussion document was launched on Wednesday, and will provide a framework for discussions, with the aim of developing a working strategy for launch at the Livestock Event at the NEC, Birmingham in July.

In its document, the NFU strongly suggests there is a need for such a policy, "While individuals have their strategies for investment, growth and market development; at present there is a vacuum with regards a whole industry strategy, with which farmers can engage… the European dairy market (of comparable EU15 countries) has consistently outperformed that of the UK, in terms of the price paid to farmers for deliveries of raw milk. There has been little to motivate or inspire farmers in the last 10 years."

The union sets out eight initial principles in its document, which range from attracting new talent and young innovators, through to improving animal welfare and increasing cooperation between players throughout the supply chain.  

The discussion document also highlights government findings from the Green Food project's dairy sub group, which suggests "it is possible to [increase output] and reduce dairying's impact on the environment." However, in its vision the union only expresses a wish to "minimise negative environmental impact," rather than commit to such a reduction. The industry document also goes on to outline the "need to maintain efficiencies and economies of scale relative to global competitors," but also to engage with consumers and "actively listen." As the public reaction to attempts to develop large dairies in Powys and Lincolnshire in recent years have shown, these two desires may not be easily reconciled in a single strategy.

Mansel Raymond, NFU dairy board chairman, said upon the document's release, "Since the Dairy Coalition committed to agree a strategy last year, the NFU dairy board has kicked off the process. Our focused working group, which has drawn on the expertise of NFU board members, DairyCo and Dairy UK has developed a set of key assumptions, which we intend to discuss in the coming months.

"We believe this strategy must be based on growth in output of milk in Britain. Our starting point is growth that at least keeps pace with the growing global market place. If we fail to do this, then relatively speaking we are falling behind in terms of scale and potentially efficiency. The British dairy industry has a lot going for it and what we must do now is organise ourselves to thrive in a brave new world where quota restrictions are lifted and demand is growing."