What price a “pinta”? Differentiating the market for liquid milk: Results of consumer research in the UK dairy sector

Abstract

Since de‐regulation of the UK dairy market in November 1995, the UK dairy industry has lurched from one crisis to another, as milk prices initially rose to levels that were unsustainable for all but the largest processors and then fell to levels at which even the largest and most efficient dairy farmers are struggling to survive. Considerable emphasis has been placed in recent years on cutting costs in the dairy supply chain, yet little attention has been given to the scope for adding value, particularly for the benefit of dairy farmers. Against this background, the Milk Development Council commissioned a research project, from which this paper is drawn, to explore the scope for adding value to liquid milk. The results of the comprehensive consumer research undertaken provide clear evidence that opportunities exist for differentiating the liquid milk market. The research also underlines the strategic importance of consumer research in an increasingly competitive market environment.