Dairy UK’s 2017 report reveals that the demand for dairy has increased globally with an upward trend in both production and prices of milk.

The report outlined opportunities and challenges on the dairy industry including Brexit and consumer confidence.

The UK dairy sector generates an overall turnover of approximately £28bn and includes more than 70,000 employees.

Dairy UK is urging the government to help the industry explore export opportunities and is seeking a review of the Eatwell Plate Guide policy to account the benefits of dairy consumption.

The report said that continued trading agreements with the EU without tariff and non-tariff barriers will ensure export and growth opportunities, while a gradual transition period could allow better adaptation to Brexit.

"Dairy UK is urging the government to help the industry explore export opportunities and is seeking a review of the Eatwell Plate Guide policy to account the benefits of dairy consumption."

The report further details the importance of access to skilled and unskilled labour to avoid an increase in operating costs and impact on margins.

As per the report, 87% of consumers in the country prefer cow’s milk, while 94% buy cheese, and 78% consume yoghurt or fromage frais. With the rise in volume and value of sales, the report said that such foods should be exempted from the Sugar Drinks Industry Levy to be imposed next year.

Dairy UK chairman Paul Vernon said: "If Brexit is successfully delivered, there is tremendous potential in terms of exports and product development. If it is a failure, there will be far-reaching consequences for dairy.

"No effort can be spared by the industry, the UK Government and the EU to secure a positive outcome and we will continue to give every assistance to the government to make that happen.

"Given the increase in global demand for dairy, prospects are good. We do, however, need to seize the moment and that will require yet more of the innovation and inspiration that have been the hallmark of our industry for generations."