More profit needed at the top

THE DAIRY industry has to create more value at the top of the dairy supply chain to ensure higher profitability throughout, according to the Milk Development Council.

The MDC has recently published the Dairy Facts and Figures 2004 which has revealed some interesting points about British consumers and how the dairy industry needs to adapt to become more profitable.

The publication reveals that people in the UK spend the lowest amount of money on dairy products out of the 15 EU countries where comparable data exists.

However, at the same time, UK residents consume the sixth highest amount of fresh dairy products at 129.3kg a head a year.

Head of economics at the MDC Ken Boyns said:  “The reason for this high intake, low spend position, is that UK consumers pay the lowest prices for dairy products in the EU.”

Dairy Facts and Figures, compiled annually by MDC Datum, and widely used by the dairy industry is the definitive statistical yearbook.

It carries a wide range of information, from stock numbers, quota allocations, monthly utilisation of milk by dairies, advertising expenditure, as well as household consumption of various foods in the UK.  

There are also details of wholesale product prices, and farmgate prices, between 2002 and 2004.

The annual booklet also reveals that the difference between the price of retail and doorstep milk has increased by 28 per cent during the past decade.

This increase partly explains the switch from doorstep to retail sales, but also represents the increased costs of servicing doorstep rounds delivering smaller volumes of milk over greater distances than in the past.

Independently compiled, and presented in a clear, concise, format, Dairy Facts & Figures is considered the dairy industry’s number one primary statistical resource.

Dairy Facts and Figures 2004 is available from MDC, priced £60.