The 21st IFCN Supporter Conference in Chester, UK
Moo-ving Forward: A Dairy Revolution Unveiled at the 21st IFCN Supporter Conference
The 21st annual IFCN Supporter Conference, organized by the International Farm Comparison Network (IFCN), brought together key players in the global dairy industry. This year's conference revolved around the transformation of the sector in two main aspects. First, it emphasized the importance of achieving high sustainability standards to maintain a "license to operate." Second, it focused on the need to convince both current and future generations of the benefits of consuming milk. The event, which was a hybrid format, occurred from September 25th to 28th in Chester, UK, with over 330 participants attending both in person and online.
The past year was marked by extremes in the dairy industry. On one hand, there were record-high milk prices worldwide, while on the other hand, there were elevated production costs, driven by extraordinary prices for energy, fertilizer, and feed. Despite these cost increases, the rise in milk prices outpaced production costs, leading to high farm incomes for many farmers globally. However, price volatility, weather anomalies, and uncertainty surrounding the political agenda throughout the year did not lead to the same increase in milk production as in previous years. For the first time in decades, the growth in milk production fell behind the increase in the world's population, resulting in a decline in per capita milk consumption.
Erik Elgersma, a strategic analyst, summarized the current situation by noting that milk prices were rising due to increased purchasing power among consumers and a limited increase in milk production. This situation has made the competition for milk a global concern because there is limited room for further milk production expansion. Economic factors were no longer the primary driver of milk production; instead, the dairy sector must transform to address various challenges and uncertainties. Lord Deben, a member of the House of Lords and Chairman of the Climate Change Commission, stressed the urgency of addressing climate change and the need for the dairy sector to adapt. He emphasized that milk is a nutritious and environmentally friendly product, but farmers must work harder to promote and secure a future for their children and grandchildren.
To navigate this path, the UK has developed a roadmap to unify the industry and set its direction. John Allen from Kite explained the necessity of this roadmap to engage farmers and the industry and to communicate their efforts to the public. Roxi Beck from Phibro highlighted the importance of understanding the needs of the future generation of consumers, often referred to as "Generation Z." This generation, comprising one-third of the global consumer base and possessing significant economic power, requires clear communication about the benefits of dairy products.
In this future-oriented context, Hayley Campbell-Gibbons, Head of Sustainability at Kite Consulting, underscored that sustainability is an investment rather than just a cost. It must become a prerequisite, and reducing carbon emissions is essential to present dairy as a positive product. Chris Brown, representing the supermarket chain ASDA, echoed this sentiment, emphasizing that sustainability has become a qualification for products to be sold.
All the speakers concurred on the importance of sustainability, particularly in reducing the carbon footprint, although the specific path to achieve this goal may vary. Mike Jerred from Cargill suggested that the industry should establish these standards before governments do so. In contrast, Tara McCarthy from Alltech favored public-private partnerships, suggesting that working together could benefit everyone and contribute to a planet with ample resources.
In conclusion, after three days of discussion, participants strongly believed that the dairy sector is well-prepared to embrace the future. However, they acknowledged that this is an ongoing process that requires continuous learning. Key factors in this journey include creating value, utilizing data, being authentic, and effective communication. The dairy sector possesses the potential to succeed in this endeavor.
Link to the source: https://ifcndairy.org/transformation-of-dairy/
