Development of the industry

11. The following table illustrates the changes in the industry since 1970:

12. Through the 1970s and early 1980s until the introduction of milk quotas, the industry had been relatively profitable allowing new investment to take place in order to increase the size of individual production units. Re-investment to modernise and develop dairy units was encouraged by grant aid schemes which led to expansion in herd size. Other grant schemes were available for producers to cease milk production, encouraging a fall in producer numbers. With a changing emphasis between food production and environmental issues within both the UK and the EU as a whole, latterly grant aid has been focused on environmental investments. Most grant aid within the dairy industry has now ceased.

13. Economic and social factors are likely to result in continuing structural changes, with herds becoming larger and milk yields per cow increasing. With national milk output limited by milk quota to at least the year 2000, the consequence is likely to be a further reduction in herd numbers.

14. Since the milk quota system allows the buying, selling and leasing of quotas, and economies of size favour the farmer with the larger herd, it is likely to be the larger, well-structured and profitable businesses that will expand herd output. The significant increases in milk yield due to the use of bulls of high genetic merit from around the world will be a major factor influencing farm output. However, capital demands will still be high due principally to the desire to acquire further milk quota (until the end of the regime) and for re-investment in buildings and milking installations.

15. Pollution control regulations in the 1990s resulted in a drift from slurry-based systems towards loose housing of which straw yards are the most common (although other materials such as sawdust are occasionally used). However, the majority of cows continue to be housed during winter in cubicles. Strawed yards are more common in arable areas where straw is relatively cheap and plentiful. Rates of straw usage tend to be at least six times greater for straw yards than cubicles. A few herds are still housed in traditional cowsheds where cows are tied up by the neck.

16. Most cows are fed at feed barriers when housed, usually with sufficient space for all to feed at one time. An increasing number of feed areas are covered to reduce wastage and to improve conditions for the herd. A number of herds continue to rely on self-feed silage systems although, as herd size has increased, there has been a move towards more sophisticated feeding systems. Out-of-parlour concentrate dispensers have been installed on many farms, particularly where trough space is limited.

17. Complete diet feeding, where a total mixed ration is offered, is increasing in popularity, especially in larger units and in those striving for higher yields. Farmers feed a mixture of forage and concentrates so that cows are unable to eat selectively any of the ingredients. Such diets are normally fed with free access on an ad libitum basis and, in theory, are designed as the sole source of feed. In practice, many farmers offer a small additional amount of feed as a supplement to the mixed ration feed e.g. through parlour feeders at milking.

18. The most popular milking system is the herringbone parlour with one person milking. Automation has increased since the late 1970s, initially with automatic cluster removers and milk transfer, automated parlour feeding and cow identification. More sophisticated computer monitoring equipment has been installed, particularly in new milking systems, to provide management control information leading to improvements in cow husbandry, health and welfare.

19. The 1990s have seen the commercial introduction of fully robotic milking but at present there has been very little adoption of this method in the UK. Most new installations continue to be herringbone parlours, although the abreast parlour has its place on smaller units. Rapid exit and rotary parlours tend to be installed on larger units requiring a high throughput of cows.

20. The UK industry is dominated by the "black and white" cow. This used to be Friesian but it is now predominantly Holstein. The Channel Island breeds are approximately 3% of the national herd with Ayrshires less than 1.5% in England and Wales but about 10% of the herd in Scotland.

21. More than 50% of cows are bred pure to produce replacement heifers, with remaining animals being cross-bred with a choice of a variety of beef breeds to produce beef calves. Bulls of easy calving breeds are used more extensively on heifers to reduce calving difficulties. An increasing number of heifers are now served with pure dairy bulls to maximise the rate of genetic change in both milk output per cow and conformation traits.

22. Many cubicle systems were constructed some years ago and are too small for the current size of dairy cow which can result in injuries to cows and their refusal to use cubicles. This has led to an increasing trend towards the adaptation of existing cubicles, the advent of more modern and better designed cubicles or conversion to straw yards.

23. Cows are more prone to lameness if the structure of their accommodation makes foot injury likely during normal movements. Lameness can result from a variety of factors e.g. cubicles which are too short; rails or kerbs inappropriately positioned or designed; inappropriate floor surfaces in housing areas which cause damage or slipping; or poorly designed housing.

24. The changing market place has resulted in many milk buyers being able to demand different requirements of their individual producers compared with the previous pooling arrangements. This has led to the emergence of different standards for hygiene and compositional quality, seasonality requirements and transport and collection options. Furthermore, a number of milk buyers are imposing on their suppliers standards regarding stockmanship, welfare and hygiene in order to meet the supposed aspirations of consumers and to give a competitive marketing edge.

25. The Council welcomes initiatives leading to improved animal welfare if these are soundly based on existing legislation, Government codes of practice and FAWC reports. Recently, there has been a spate of animal welfare schemes drawn up by industry bodies, retailers, welfare groups etc. At the time of writing the National Farmers Union, the Dairy Industry Federation, the British Cattle Veterinary Society and the UK Federation of Milk Producer Organisations are setting up an initiative to design a National Dairy Farm Assurance Scheme. The Agriculture Departments are best placed to oversee discussion about the role and effectiveness of such schemes. Enforcement of legislation and codes is a key factor. There is little point in introducing new controls if adequate measures for their audit and enforcement are not in place.

Recommendations

26. Legislation and codes of practice which relate to the welfare of dairy cattle must be effectively enforced.

27. Government should keep in close contact with those organisations setting their own welfare standards to encourage a consistency of approach.