 Thank you for the invitation to speak today to share some of the findings
from the Welsh dairy review that I’ve been proud to chair.
 Why did I agree to chair this review? It’s simple – I care passionately
about the future of the British dairy industry and for the impact it has on
human health, the countryside and local communities. Welsh dairying
has a crucial and leading role to play in the success of our UK dairy
industry and of course it is also the place where Volac, the company I
work for, has a large whey processing facility. Your success is important
to myself and Volac.
 So, the Welsh dairy industry has 1855 dairy farmers, ¼ million dairy
cows and 1.6 billion litres milk produced every year. Does that sound like
a dairy industry to you? You bet it does and based on my interviews
most of you agree too!
 For those of you who know me you will understand that I have a real
passion for the dairy industry and that I have high expectations for the
impact dairy can have in the UK and on the Global stage.
 I genuinely believe that the Welsh dairy industry has the potential to
become one of the most iconic and efficient dairying countries in the
World and after interviewing over one hundred stakeholders as part of
this review I am in no doubt there are many others who share this view.
 The Welsh dairy industry is not broken and there is great pride in the
industry but I do appreciate that we are currently facing some significant
challenges that are having a profound impact on the lives of many in
dairy farming.
 So, what did this review set out to achieve?
The review was commissioned by The Deputy Minister Rebecca Evans,
to make recommendations for a package of measures that would deliver
competitiveness, resilience, economic growth and the creation of
additional jobs within the industry. It also aimed to provide a strategic
direction for the dairy sector and the associated supply chain in Wales
that will help inform the Welsh Government’s Agriculture Strategy for
Wales. The full Terms of Reference are contained in the report which will
be published shortly.
 I would like to take the opportunity to commend The Deputy Minister,
Rebecca Evans AM for commissioning the review and for both her
commitment to, and interest in, the Welsh dairy industry.
 I would also like to thank Ken Stebbings of the Welsh Government for
his expert support and advice in helping me research and write this
report … also for navigating me around the Welsh roads!
 But above all I would like to thank all those who gave their time during
the evidence-gathering phase of this review. Their insight, commitment
and openness has been greatly valued.
 Rebecca has already mentioned that I personally interviewed over 100
people from across the supply chain. It was some task but I’m so glad I
did it. I sensed real passion, pride and energy in the Welsh dairy industry
despite many farmers experiencing very difficult times.
Lets really work together to build on that passion, pride and energy to
make the Welsh dairy industry one of the best in the World – I believe
we can do it!
 So what did I conclude through the review process?
Without strong leadership, the industry lacks direction, cohesiveness and
the development of those who influence and support others to achieve
common tasks. For this reason, the recommendations will establish a
sound leadership framework on which we can base the future. At the
same time, there is a real imperative for action to address the needs of a
diverse Welsh dairy industry and so the report clearly identifies key
actions that Government and industry should take now.
 The report is not intended solely as an action list for Government but
instead, it should be seen as a tool by which the Welsh dairy industry
can help itself, supported by Government, on the journey to a
prosperous and sustainable future. It is important that we focus on
achievable outcomes and that we delegate responsibilities for achieving
these outcomes to people who have the drive, knowledge, skills and
determination to make things happen.
 As I have already said the report is now in the hands of the Deputy
Minister and I expect to be published shortly. But for now I would like to
give you an overview of what it contains. I’m sorry I can’t give exact
details but I’m sure you’ll understand that this is not possible until the
report is formally published.
 To enable the Welsh dairy industry to excel on the world stage, we need
to ensure that we have strong leadership that unites and energises the
supply chain and ensures we collaborate effectively to achieve priority
outcomes.
 To compete in the world market the industry needs to focus obsessively
on what the future market needs and deliver this in a way which matches
the most efficient in the world, which focuses on innovation and which
respects the natural environment. None of these will be possible unless
we have the correct people with the best knowledge and skills.
 As Rebecca has already stated, the review therefore recommends a five
point plan which combines strategy with action. The five areas are;
Leadership
Market Focus
Efficiency
Knowledge & Skills
Environment
 Within each area there are specific recommendations which will be
available in the published report. It would be wrong to go over these in
fine detail today because we need to give The Deputy Minister the
courtesy of preparing an action plan to address the recommendations
before they are widely communicated.
 I would like to go through each of the five areas to outline the outcomes
we need to achieve which are the means by which we measure success.
 Firstly LEADERSHIP
The outcome we are aiming to achieve is a joint industry/Government
structure united behind the Welsh dairy industry and operating within the
new Welsh Agriculture Strategy, that enables the combined energy,
passion, knowledge and business acumen within the industry to achieve
agreed outcomes.
Without strong leadership, the industry lacks direction, cohesiveness and
the development of those who influence and support others to achieve
common tasks. The leadership recommendations will establish a sound
leadership framework on which we can base tactical recommendations
and the future.
 The second part of the 5 point plan is MARKET FOCUS
The title of your conference is “Communicating with the consumer” so
this area of the report resonates well.
Rebecca referred to what I’ve been saying for a number of weeks in
response to people saying that milk is cheaper than bottled water. Milk is
not cheaper than unbranded bottled water but it is cheaper than branded
bottle water. Our job, as Rebecca said earlier, is to build brands for milk
and for dairy products so that we can establish loyalty and add value to
our supply chain.
In the market focus section of the report we aim to deliver a Welsh dairy
industry that focuses on adding value through innovation based on a
deep understanding of the unique and differential needs of domestic and
international markets.
An obsessive focus on the needs of customers will ensure the industry
looks ahead and takes full advantage of added value market
opportunities.
 The third point of the 5 point plan is EFFICIENCY
I appreciate that no one likes being told they need to be more efficient
and that’s not what I am saying. What I am saying is that the Welsh dairy
supply chain needs to constantly strive to improve efficiency and be
amongst the most efficient in the world allowing it to compete in the
world market and provide an attractive place for businesses to invest.
The success of the Welsh dairy industry is very depended on the export
market (and that includes the rest of the UK) so if the welsh dairy
industry doesn’t focus on efficiency then other dairy countries around the
world will do and they will win in exports markets. We can’t let that
happen.
 The Fourth key area of the report is KNOWLEDGE AND SKILLS
We need to ensure the Welsh dairy industry attracts, develops and
retains the best, most knowledgeable and motivated talent across the
supply chain to meet the future needs of the sector.
I’ve already talked about the importance of an efficient market focused
industry but this is not possible without having the correct people with
the best knowledge and skills.
 Any finally the ENVIRONMENT
We need to ensure that the Welsh dairy farming is able to meet future
market demands for the care of natural capital (air, soil, water and
biodiversity) and be promoted as having a low carbon footprint.
Dairy industries of the future will need to demonstrate that they have a
net positive impact on natural capital in line with consumer expectations.
Natural Capital may be a new term to many of you but it is crucial we
understand the impact dairy has on natural capital and I believe dairy
has a good story to tell which is far better than focusing on just
greenhouse gas emissions.

That’s the Five Point plan that you’ll be hearing about more over the next
few weeks:
Leadership
Market Focus
Efficiency
Knowledge & Skills
Environment
 My take home message to you is simple:
After talking to over a 100 people in the supply chain I’m very confident
that the Five Point plan is the way forward.
What matters now is that we collaborate together to deliver the plan
quickly, simply and effectively. There is no room for half commitments.
You have my commitment to play my part in seeing it through and I look
forward to working with you all to do the same.
 I am honoured to have chaired the review of the Welsh dairy industry
and play my part in securing the future of the Welsh dairy industry.
 Thank you