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Recent Changes in Milk Marketing in the UK: The Farmers' Perspective

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  • Franks, J.R.

Abstract

In 1994 Milk Marketing Boards in the UK were disbanded, their role as milk purchasers was taken by more than 100 licensed organisations. It is shown that this change resulted in an increase in the variation between producers' milk price. The majority of dairy farmers sold milk through the Milk Marketing Boards designated successor; a farmer owned co-operative called Milk Marque. In doing so they accepted a 1.5 ppl milk price penalty. It is shown farmers who adopted this strategy did so because of the perceived financial security of Milk Marque, goodwill and support for the principle of co-operative marketing and in an attempt to protect the milk price over the longer-term. The marketing environment changed once again in 2000 when Milk Marque was disbanded. Deductions drawn from the analyses of farmers' behaviour following the 1994 deregulation are used to inform consideration of possible developments in the marketing of milk in England and Wales.

Suggested Citation

  • Franks, J.R., 2002. "Recent Changes in Milk Marketing in the UK: The Farmers' Perspective," 13th Congress, Wageningen, The Netherlands, July 7-12, 2002 6969, International Farm Management Association.
    • Handle: RePEc:ags:ifma02:6969
    DOI: 10.22004/ag.econ.6969
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    References listed on IDEAS

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    1. Fearne, Andrew & Ray, Derek, 1996. "Price determination and discovery in a 'de-regulated' milk market: perspectives on the price of UK milk," Food Policy, Elsevier, vol. 21(2), pages 171-187, May.
    2. Franks, Jeremy, 1999. "Dairy Enterprise Costs Study: A Review of the Structure and Economics of Milk Production 1987/88 to 1996/97," Reports 233207, University of Manchester, School of Economics, Agricultural Economics Department.
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      Keywords

      Agribusiness; Demand and Price Analysis;

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