The countdown to 2012 has already begun and all eyes are on
It is set to be an event like no other, and we have already been promised it will be the biggest and best we have seen to date.
Yes, Arla's proposed new milk processing plant is something which will place the
And one which could - for the dairy industry at least - be an event far more significant than the small matter of the Olympics taking place just the other side of the M25.
That sentiment will not be lost on the
It shows confidence in an industry which has been battered from pillar to post in recent years. It also demonstrates that Arla is in it for the long term as it cements its position as the biggest liquid milk processor in the country.
And with 1 billion litres of milk - that's enough to fill the Olympic swimming pool at
The announcement raises two big questions. First, where will Arla get the milk from, and second, is retail growth at Arla going to be strong enough to sustain those volumes?
The simple answer is not without big changes. One presumes they will need to recruit many more producers and they will also have to target retail and wholesale contracts already held by other processors.
That should set a cat among the pigeons as the other big players, Wiseman and Dairy Crest, look at their own liquids business wondering if they can sustain their position.
Wiseman, one would argue, can. With its impressive new dairy at Bridgwater producing 375 million litres a year it already has the strength of position to see off any challenge.
Dairy Crest however is a different matter. It would take a huge investment for it to match the two biggest players in the market and its liquids business is likely to be vulnerable from the anticipated onslaught from Arla.
But whatever happens in the processing sector one thing is for sure, the
Has anyone actually thought that Arla's plan to build in London might perhaps be because they are getting ready to use imports to meet demand?
We all know milk production is falling, so in exactly the same way as Vion imports pork to be cut in its UK operations, then Arla will import bulk milk for further processing.
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