At the AgriScot dairy seminar Paul Grant, chair of the Scottish Dairy Growth Board, received mixed response to his proposal to begin exporting milk abroad.
The scheme, launched in 2021, outlined the possibility of exporting £150m of fresh pasteurised milk by 2030, however many in the room appeared vacant to the news as Mr Grant spoke.
Talking through the justification for such a venture Mr Grant said: “The impact of climate change in those countries where annual water scarcity is a reality has led to real interest from dairy processing companies in the supply of fresh milk.
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“Scotland with its sustained water availability, grass-feeding and milk growth potential, perfectly fits this supply situation.”
It was revealed that the scheme has identified Morocco as their first target for exportation with talks ongoing with the north-African nation’s largest milk processors.
“The director responsible for food and processing visited Scotland with his technical farming director in July,” said Mr Grant.
Facing questions from the audience on the logistics behind pasteurising such high volumes Mr Grant stated that there would have to be significant investment in a suitable pasteurisation plant as well as a milk concentration plant capable on the same sight to ensure adequate prices for farmers.
Given the lack of processing facilities in Scotland Mr Grant promoted this new venture as a way for Scottish dairy farmers to open new international markets, while also continuing to work with their contracted partners in the UK.
He admitted that more work and discussion was required but that the project had found a positive footing.
Also, a topic of discussion at the seminar was the future milk market projections, provided by agricultural journalist and milk analyst, Chris Walkland who predicts that the market should remain stable heading into the second quarter of 2025. He stated that the projection of 40p/l would put farmers in a cash positive position with the combination of F&P and volume bonuses.
Arla UK director Paul Dover commended the work of the Scottish dairy sector during his opening remarks and stated that they “see a long-term future in Scotland,” following their significant investment at the processing facility in Lockerbie.
While Alex Jack, a dairy farmer from Fife and Richard Thompson, agricultural supply chain adjudicator for Defra, clashed on legislation. Ms Jack stated that the new reforms are not an adequate safeguard for dairies and were needed ten years prior.
She said: “The fundamental issue is that 12 months’ notice is not long enough given the investment a dairy farmer has to put into their business to stand still, let alone grow.”
Mr Thompson stated Defra’s willingness to work with the sector and listen to industry voices and reinforced the departments desire to protect the nations dairy sector.
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