Speaking at Dairy UK's Annual Dairy Dinner in London, Dairy UK Chairman Robert Wiseman said: "No industry can rest on its laurels and I know the dairy industry has the determination, resilience, skill and innovation to rise to the many challenges we encounter. We are in for the long haul and are unwavering in our commitment to give the public nothing but the best of British dairy.
"The future growth prospects for our £10 billion industry, on the back of rising demand and a growing global population, are outstanding."
Mr Wiseman said the UK industry was preparing well for the future. He said: "In the first place, consumers love our products – in all their various forms – with something to suit everybody's tastes and dietary requirements.
"We are also an important industry given the number of people we employ in rural communities and the countryside. "Like many other sectors we have to pedal even harder in an acutely challenging economic climate. We continually strive to succeed. The industry is in a better place than it was 12 months ago."
He said both farmers and processors, more than ever before, have a clear focus on competitiveness and a clear understanding that margins are more important than price.
"Markets are tough. Markets are also volatile. Combined with a generally harsh economic climate, this has resulted in recent reductions in the prices paid to dairy farmers. They have fallen back from the record levels that they had reached earlier in the year.
"This is very regrettable, but with increased exposure to world markets, and a reduction in protection afforded by the CAP, this volatility is inevitable, and it will not go away.
"The message from all informed industry observers is that there will be greater opportunities in dairy that probably any other agricultural sector, and that the UK dairy industry has the capability to compete and prosper. This is what we must bear in mind when thinking about the future."