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 A report on the UK Dairy
Industry
The Size and Type of Dairy Industry in Britain
There are currently just over two million dairy cows living on the UK’s
21,000 dairy farms, with Somerset and Cheshire the main areas of dairy production
(1, 2). As cows must give birth to a calf each year in order to produce milk,
there are also around two million dairy calves in the UK at any one time.
Over 58% of the UK’s dairy cows are now kept in herds larger than 100 – compared
to average herds of just 30 in the 1970s (1, 3).
Ninety-five per cent of dairy cows in the UK are black and white Holstein/Friesians,
with Ayrshire, Guernsey and Jersey cows making up the remaining 5% (4). Holsteins
and Friesians are two slightly different breeds, with the North American
Holstein being larger and having a higher milk output than the British Friesian
(4). This high milk yield has lead to Holsteins replacing Friesians on most
UK dairy farms and an increase in annual milk yield per cow from 3,750 litres
in the 1970s to 8000 litres today, with some high genetic Holsteins reaching
10,000-12,000 litres a year (3, 5). This equates to a daily milk production
of 30-50 litres, ten times more than a cow would naturally produce to feed
her calf (6).
The unnatural physical demands placed on modern dairy cows results in a
quarter of the national dairy herd being culled every year due to lameness,
mastitis (udder infection) and infertility (5). In many high-production herds,
cows are worn out and sent for slaughter before their third lactation – at
only four to five years old – when they can naturally live to be at
least 20 (7) (there are cases of dairy cows on sanctuaries living into their
30s).
Milk production in the European Union is limited by milk quotas, with the
annual UK production quota set at 14.2 billion litres (8). Although the UK
is 90% self sufficient in milk, it imports a significant amount of dairy
products. In 2003, for example, the UK imported 314,000 tonnes of cheese
(compared to UK production of 366,000 tonnes), mostly from Ireland, France
and Germany; and 119,000 tonnes of butter (compared to UK production of 145,000
tonnes), mostly from Denmark, Ireland and New Zealand (8).
With an annual turnover of over £6 billion, the dairy sector constitutes
10% of the UK’s food and beverage sales (2). The four largest dairy
processors – Dairy Crest, Arla, Wisemans and Milk Link – have
a combined annual turnover of £4 billion and profits of almost £200
million (9, 10, 11, 12). Together they spend over £46 million a year
on advertising, targeting mainly children, teenagers and new mothers (13).
In 2004 Dairy Crest, the UK’s largest dairy processor, received £19.8
million in EU funding under the Common Agricultural Policy – despite
having a profit of £85 million that year – while UK dairy processors
received a total of over £50 million in CAP payments (14). EU dairy
processors also receive export subsidies to ‘enable them to compete
in international markets’ (13). In 2004 this totalled€2.3 billion
(13).
Promotion
The UK dairy industry is supported and promoted by the Milk Development
Council (MDC), the Dairy Council and Dairy UK.
The MDC is a public body established in 1994 (replacing the Milk Marketing
Board) with the aim of
‘improving the profitability and competitiveness of Great Britain's
dairy farmer’ (15). It is situated within the Department of Environment,
Food and Rural Affairs (DEFRA) and its council members are appointed by DEFRA
Ministers (15). Their annual income of £7 million comes from a statutory
levy paid by dairy farmers on their milk sales (15). They also receive regular
funding from the EU, including £3 million in 2004 for their ‘Naturally
Beautiful’ advertising campaign which encourages teenage girls to consume
more dairy products for their claim of better looking hair and skin (15).
In 2005 they plan to spend £4.7 million marketing dairy products in
the UK.
The Dairy Council is a limited company funded jointly by the MDC and dairy
processors. Their mission statement is:
“To promote the positive image of milk, its products and the industry
as a whole in the eyes of consumers and key influencers, thus helping
to increase the consumption of dairy products.” (16)
They work to achieve this goal by distributing ‘health education,
consumer and teaching literature about dairy products’ (16). In 2004
they received £305,527 in EU funding under the Common Agricultural
Policy (16).
Dairy UK is a limited company which brings together ‘dairy processors,
farming representatives, co-ops and bottle milk buyers to form an organisation
that embraces and gives full priority to the views and opinions of all those
involved the industry’ (17). Dairy UK staff operate throughout the
UK to
‘ensure the interests of the dairy sector are properly considered
in the policy formulation process by the UK government, devolved administrations
and the EU’ (17).
Targeting Children
Fig. 2. The dairy industry bombard schools with propaganda thinly masked as ‘educational
material’, such as this booklet produced by Dairy Council which is distributed
to primary schools
Realising the importance of getting people hooked on milk while they are
young, the dairy industry bombard British schools with propaganda thinly
veiled as ‘educational’ materials. To ‘increase
the appeal of milk to primary school children’, the MDC distribute
a free interactive CD Rom, The Story of Milk, featuring Charlotte
the cartoon cow, to schools across Britain (15). The Dairy Council produce
a cartoon booklet along the same vein called It’s a Cow’s
Life which ‘informs young children about the life of a dairy cow
and what happens on a dairy farm’ (4). The information in the booklet
is so far from reality that it borders on make-believe, featuring a cartoon
cow cradling her calf in her arms when in real life dairy calves are torn
from their mothers within 72 hours of birth (4, 7).
They MDC also target primary school teachers with a Healthy Choices pack,
aimed to ‘put information about the health and nutritional benefits
of dairy products, balanced diets, the composition of milk and dairy products,
and the range of dairy products available to UK consumers at the centre of
the school curriculum’ (15). They also jointly funded Dairy UK’s
campaign promoting milk consumption in primary schools which involved sending
copies of the innocently named ‘Teacher’s Guide to Health and
Fitness’ to over 10,000 schools (17). According to Dairy UK’s
Edmund Proffitt, this education pack, which received £50,000 in EU
funding, aims to ‘develop healthy young milk customers in primary schools’ (17).
The EU also recognizes the importance of targeting children and operates
a school milk subsidy scheme that aims to
‘expand the market for milk and milk products by encouraging
children (from the ages of 5 to 11) to consume milk and milk products,
and develop a lasting habit of doing so’ (18).
Under this scheme, which is actively promoted by the MDC, the Dairy Council
and Dairy UK, milk and yoghurt are supplied to schoolchildren at reduced
prices (4, 15, 17, 18). In 2002 this aid totalledover £9 million (18).
More Subsidies
In 2004 EU dairy farmers received a total of €970 million in direct
aid from the EU, with UK farmers receiving €119 million (13). According
to the Milk Development Council these figures are expected to rise dramatically
in the next few years, with a projected total of €4.2 billion paid to
EU dairy farmers in 2007 (13).
The EU also operates the Butter for Manufacture scheme which aims to ‘dispose
of surplus butterfat by encouraging manufacturers to use butter in manufactured
products in preference to cheaper vegetable oils’ (18). Under this scheme
a subsidy is paid to food manufacturers on butter, butteroil and cream processed
into certain eligible products (cakes, biscuits, ice cream, soup etc) (18).
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