The Provision Trade Federation (PTF) has said the Government’s extension to the Soft Drinks Industry Levy to milk-based drinks, which was announced at the Budget yesterday, was “unwelcome, but expected” according to its Director General Rod Addy.
The PTF is a food trade association representing processing, manufacturing and trading companies that cover a wide range of staple provisions e.g. dairy products, cheese, butter, powders, yogurt, short life dairy desserts and dairy drinks, pork, bacon, ham and fishery products, all sourced from UK, EU and international supply chains.
Collectively these sectors account for roughly 20 per cent of UK household expenditure on food (around £24 billion a year) and support some 130,000 jobs across the UK.
“PTF members continue to work hard to enable dairy products to contribute to a healthy, balanced diet and we support the need to reduce added sugars in products to combat obesity and dental caries.” Addy said.
“We are relieved that the government chose to listen to our arguments and lessen the impact on industry by opting for a reduced lactose allowance of 4.5g per 100ml rather than 4g in products, which will not count towards sugar content for the purpose of drinks tax.”
“Lactose is a naturally-occurring milk ingredient and levels have been calculated based on average amounts in semi-skimmed milk.”
“Dairy products suppliers have already done much to reduce sugar in milk-based drinks, particularly those with high milk content, as well as yogurts.”
“For all the hype around this budget, it could have been far worse for business.” Addy continued. “That said, arguably much of the damage was already done this time last year.”
The PTF has been in existence for nearly 140 years and lobbies on behalf of its members, acting as the “voice of the industry” in close discussions with Government and other policy makers and influencers.