7 June 2002

Milk supply chain probe

DAIRY farmers will be hoping that accountancy firm KPMG can find out where the money goes in the milk supply chain when it investigates the UKs milk prices over the next six months.

The company was awarded the research tender, subject to contract, from the Milk Development Council, although details of how much it will be paid remain undisclosed until negotiations finish at the end of this week.

The project should help explain why UK milk producers have been paid less for their milk than their European counterparts in every year since 1992.

In 1998, UK farmers got 13% less than those on the Continent at 19.26p/litre. Last years prices were 8% below those in Europe at 19.14p/litre.

The MDC also wants KPMG to provide practical solutions on how to develop a sustainable dairy industry, by drawing from supply chain models in Europe and the US. &#42