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News Corona crisis

UK relaxes rules to support dairy industry

20 April 2020 - Jorine Cosse

The global dairy industry has been hit hard by the outbreak of the COVID-19 virus. As is known, in some countries the milk is washed away because there is not enough capacity to process it. In the United Kingdom, the government now wants to do everything it can to prevent waste.

In the Netherlands it was announced at the beginning of April that the dairies crisis deal closed to deal with possible problems in milk processing. If there is a hitch somewhere, it will be solved as much as possible by working together. The United Kingdom (UK) is now also coming up with a similar deal.

Relaxation of rules
The British government has relaxed competition rules in the dairy industry to offer the sector more opportunities in this uncertain time. This relaxation makes it easier for dairy farmers and milk processors to work together. With this, the government hopes to prevent or in the worst case limit wastage of dairy and negative economic effects for the industry.

American troubles
British dairy farmers collectively produce about 40 million liters of milk per year. Now that almost the entire food sector has closed its doors, a large sales market is disappearing. In the USA As a result, some dairy farmers were forced to drain milk. In addition, the capacity decreased considerably, for example due to illness among employees of the milk processors

The UK would like to avoid a similar situation, so they allow more cooperation between dairy farmers and milk processors. The government hopes that all possible capacity can be used in this way. If the capacity of certain processors is lost, this can be absorbed by other processors as a result of the relaxation.

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Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

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