Lack of investment in UK processing

Published 3 May 16

According to Promar, dairy companies in the six largest European exporting countries have invested over €5bn in high profile capital investments in recent years. Converting this into spend for every litre of milk produced in the country, shows just how little has been invested in the UK compared with the other key countries.

In their “European Dairy Industry Towards 2020” report, Promar references €468m investment in the UK between 2011 and 2015, compared with €1.4bn in Germany and €785m in Ireland. Converting this into pence per litre (based on a 4-year average exchange rate and annual milk volumes), shows the six-country investment averaged 4.1ppl. Ireland led the way at 9.9ppl, while the UK was bottom of the chart at just 2.4ppl.

What is even more alarming is that most of the investment in the UK was to replace old liquid sites, which, while bringing efficiency savings, has not helped the country deal with the extra milk currently being produced. 

EU milk processing investment

Source: Promar/AHDB