Milk utilization and the role of the Milk Marketing Boards*

Abstract

The extent to which the pattern of milk utilization in the United Kingdom differs from that in the rest of the European Community (EC) is examined. It is concluded that the differences are not as great as is often assumed. There is, however, a distinct lack of variety in two sectors of the UK industry – cheese and fresh products. In both cases this reflects the nature of the market rather than any lack of enterprise in the industry. The importance of the liquid milk market in the UK has been accepted as the principal justification for the continuation of the Milk Marketing Boards under EC law. The preeminence of the UK in this respect has been declining in relation to the rest of the EC. but there is no immediate threat to the existence of the MMB system because of this. A response is made to assertions that the UK milk pricing system inhibits the development of higher value outlets and greater variety. These allegations are rejected as without foundation and the contrary argument advanced that the MMB system, with its jlexibility and easy access by dairies to milk supplies. provides an ideal base for the stimulation of product development.