Dairy UK has detailed the 'game changing’ opportunities and challenges which the industry is facing over issues such as Brexit and consumer confidence in dairy foods.

In its White Paper, Dairy UK calls Brexit the most defining issue the industry has faced for generations and has identified what Brexit needs to deliver to safeguard the future interests of an industry that employs more than 70,000 people, and has an overall turnover of nearly £28 billion.

On the prospects of the dairy industry, the White Paper reveals that demand is growing globally and that milk prices are on an upward trend. UK consumers continue to support dairy loyally, despite the arrival of plant-based alternative drinks and anti-dairy activism with 87% consumers drinking cow's milk, 94% of adults buying cheese and 78% enjoying yogurt or fromage frais. In fact latest figures show continuous growth in volume and value of sales of milk, cream, cheese yogurt, butter and organic dairy products.

On the issue of Brexit, Dairy UK says that continued trading agreements with the EU without tariff and non-tariff barriers will mean massive export and growth opportunities. Failure will damage exports and reduce demand for dairy and the worst outcome would be a return to WTO rules.

The organisation believes that an unhurried transition period would give the industry the chance to adapt and take advantage of the opportunities Brexit creates. It also considers that access to skilled and unskilled labour is vital since failure to maintain access will drive up operating costs, with a major impact on margins.

Paul Vernon, chairman of Dairy UK, said: “The White Paper demonstrates that consumer love for dairy remains very strong, and we have to ensure that we are equipped and ready to continue to help feed the nation for generations to come.

"Brexit is a monumental challenge and a game changer. If Brexit is successfully delivered there is tremendous potential in terms of exports and product development. If it is a failure, there will be far reaching consequences for dairy.

“No effort can be spared by the industry, the UK government and the EU to secure a positive outcome and we will continue to give every assistance to the government to make that happen."

“Given the increase in global demand for dairy, prospects are good. We do, however, need to seize the moment – and that will require yet more of the innovation and inspiration that have been the hallmark of our industry for generations.”

Dairy UK is keen that UK dairy farmers should not be disadvantaged compared with their European neighbours and it believes that the Northern Ireland border issue should be resolved by creating a frictionless and seamless border regime that could be a blueprint for future arrangements with the EU.