Recent Changes In Milk Marketing In The Uk: The Farmers' Perspective

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.