Download - The Dairy Market 2014
Dairy Market 2013-14
The Commodities Market
• GDT becoming world stock exchange for dairy
• Butter, whey, cheddar, SMP all being traded internationally
• Dairy prices are increasingly being set by the GDT
Mergers and Acquisitions in Dairy
• Big changes in own label cheese
Flavoured Milk
Protein drinks• Historically drinks made up
at home
• Now moving towards ready to drink
Flavoured Milk Cont.
• Value sales up 9.3%
• Volume sales up 5.6%
• Total category - £119m
Why?• Lots of new entrants to
market• Promotions in store
Capacity Balance
• Too little milk, processing assets not utilised
• Too much milk, unable to process.
• Milk supply affected by weather, seasonality, demand and prices
Butter
• Arla moved production to Westbury (Anchor)• Muller Wiseman opened up in Market Drayton• Dairy Crest moved butter packing into Kirby
Butter Cont.
• British Provenance increasingly being used to inspire brand loyalty
• Value sales of diet spreads down 4.1% due to fear of additives and E numbers
• Opportunity for healthy, natural spreads
Fresh, Doorstep and UHT Milk
• UHT sales down
• Doorstep milk down
• Fresh milk up - £5.2bn, volume growth 1.5%
Milk Cont.
• Explosive growth in Lactose Free
• Yoghurt, butter, milk, cream
Milk Cont.
• Massive investment in liquid milk:– Severnside, Dairy Crest– Aylesbury, Arla– Muller Wiseman
Quotas in 2014Abolition in 2015
Market tightens in responseWill the UK have enough milk supply to
respond?
Looking to 2014
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