The National Farmers' Union this week launched a Survival Plan for British Dairying.
Laying down the gauntlet at its annual conference in Birmingham, the union said the industry's prospects were positive, but a clearer action plan was needed.
Last year, British dairy farmers produced their lowest volume of milk for 30 years, and suppliers were no longer able to meet core milk requirements, claimed NFU chief dairy advisor Hayley Campbell-Gibbons.
"We are losing two dairy farmers a day from our industry and that is an unsustainable level of exit," she said.
The NFU's plan set out goals for farmers, processors, retailers, food service operators, the Government and banks to help support the industry.
Producers must demand milk supply contracts from processors that offered long-term guarantees for milk prices, said the report.
Retailers, meanwhile, should aim to set up dedicated cheese supply chains along the lines of those already in place for liquid milk.
The union criticised Tesco for being the only major retailer not to source its own-label Cheddar from Britain, and urged suppliers and retailers to display the Red Tractor logo on own-label products.
The plan was launched just days after Dairy UK published its White Paper 2009, claiming factors such as price volatility and a shortage of replacement heifers were placing intense pressure on domestic milk output.
Dairy UK called for more balanced regulation, a laissez-faire approach to consolidation and increased R&D to ease the strain.
The Government needed to play a stronger role in helping the industry overcome these problems and tackling TB, according to the report.
"Commercial prospects are strong, with a weak pound helping our exporters and strengthening the domestic market. Globally, the supply and demand balance will return to our favour," said Dairy UK director general Jim Begg.
Laying down the gauntlet at its annual conference in Birmingham, the union said the industry's prospects were positive, but a clearer action plan was needed.
Last year, British dairy farmers produced their lowest volume of milk for 30 years, and suppliers were no longer able to meet core milk requirements, claimed NFU chief dairy advisor Hayley Campbell-Gibbons.
"We are losing two dairy farmers a day from our industry and that is an unsustainable level of exit," she said.
The NFU's plan set out goals for farmers, processors, retailers, food service operators, the Government and banks to help support the industry.
Producers must demand milk supply contracts from processors that offered long-term guarantees for milk prices, said the report.
Retailers, meanwhile, should aim to set up dedicated cheese supply chains along the lines of those already in place for liquid milk.
The union criticised Tesco for being the only major retailer not to source its own-label Cheddar from Britain, and urged suppliers and retailers to display the Red Tractor logo on own-label products.
The plan was launched just days after Dairy UK published its White Paper 2009, claiming factors such as price volatility and a shortage of replacement heifers were placing intense pressure on domestic milk output.
Dairy UK called for more balanced regulation, a laissez-faire approach to consolidation and increased R&D to ease the strain.
The Government needed to play a stronger role in helping the industry overcome these problems and tackling TB, according to the report.
"Commercial prospects are strong, with a weak pound helping our exporters and strengthening the domestic market. Globally, the supply and demand balance will return to our favour," said Dairy UK director general Jim Begg.
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