Britain's farming co-operatives need to be freed from the constraints of competition law to enable them to raise their game and become class acts like their counterparts abroad, according to a report from First Milk.
The Promar International study hails the achievements of co-ops such as Arla and Fonterra and says the likes of First Milk, Dairy Farmers of Britain and Milk Link could do as well - if the government scraps the competition rules.
Farming co-ops here are frustrated by laws that put them 20 to 30 years behind international rivals, and are blamed for adding to the hard times they face.
UK co-ops will also thrive if they display the characteristics of successful quoted or private equity businesses, hiring professional managers from outside farming, driving vertical integration and investing in processing.
British co-ops should imitate the strong brands, relentless NPD, and, especially, exposure to international markets and vertical integration of Arla Foods, says the report. It praises New Zealand's Fonterra for low-cost production, integrated and efficient supply chain, and strong brands.
The New Zealand government facilitated its creation by waiving Competition Commission approval.
The report flags up that competition policy abroad has permitted the merger of co-ops and the acquisition of other businesses when this has been necessary to create sufficient size to compete on a global scale.
First Milk chairman Richard Greenhalgh said: "Public policy needs to recognise what the farming co-operatives in the UK can become, rather than what they were, and should also take account of European and global markets.
"Our international competitors also enjoy the positive and active support from their governments both in their home and their export markets.
The Promar International study hails the achievements of co-ops such as Arla and Fonterra and says the likes of First Milk, Dairy Farmers of Britain and Milk Link could do as well - if the government scraps the competition rules.
Farming co-ops here are frustrated by laws that put them 20 to 30 years behind international rivals, and are blamed for adding to the hard times they face.
UK co-ops will also thrive if they display the characteristics of successful quoted or private equity businesses, hiring professional managers from outside farming, driving vertical integration and investing in processing.
British co-ops should imitate the strong brands, relentless NPD, and, especially, exposure to international markets and vertical integration of Arla Foods, says the report. It praises New Zealand's Fonterra for low-cost production, integrated and efficient supply chain, and strong brands.
The New Zealand government facilitated its creation by waiving Competition Commission approval.
The report flags up that competition policy abroad has permitted the merger of co-ops and the acquisition of other businesses when this has been necessary to create sufficient size to compete on a global scale.
First Milk chairman Richard Greenhalgh said: "Public policy needs to recognise what the farming co-operatives in the UK can become, rather than what they were, and should also take account of European and global markets.
"Our international competitors also enjoy the positive and active support from their governments both in their home and their export markets.
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