UK dairy faces innovation deficit

There must be more co-operation in Britain's dairy industry to improve innovation and market research if the sector is going to compete with rivals abroad, says a new report.

There are a wide range of barriers to innovation facing Britain's dairy industry, according to a newly published report by the Milk Development Council and Department for the Environment, Food and Rural Affairs.

Milk Genetics

The report says the UK is missing out on opportunities for future product development by not investing to research the genetic make-up of milk.

"The UK industry tends to worry about its UK competitors as opposed to other countries where these issues are progressed on a national basis."

It adds that industry must should draw up an action plan and actively participate in current international milk genome work.

Several countries have already led the way through the international Milk Genomics Consortium, while national level research continues apace in Australia and New Zealand in particular.

Britain will have a good chance to make up ground this September, when scientists from around the world will come to Brussels to discuss cutting edge research in milk genomics at the third International Symposium on Milk Genomics.

Research and Development (R&D)

The report says the MDC's Dairy Supply Chain Forum should conduct an industry-wide survey on how to combat a gap in facilities and resources for R&D.

A central testing facility, available for hire for companies testing new technologies and products, should also be considered, it adds.

"Little or no opportunity exists for potential investors to try out new technologies without first making huge commitments."

Both the MDC and DEFRA said industry players were not sharing enough knowledge to help the sector grow.

The report also says new entrants to the UK dairy sector expressed frustration at the lack of available information about the structure of the industry.

Positive Attitude

Failure to sort out the problems on Britain's dairy industry could lead to further inroads from foreign firms, and greater erosion of the UK's competitiveness on the international dairy scene.

The report does, however, say that the atmosphere was right in the industry for progress on cross-sector co-operation.

"We are turning things around and there is some good news out there, but we probably have a fair way to catch up," said Ken Boyns, MDC market analyst, to DairyReporter.com, when a similar report also pointed to Britain's innovation deficit last autumn.