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

HRA – The Dairy Specialists

We understand the whole supply chain

Milk Supply

Processors

Retailers

Consumers

HRA – A Pathway to Success

• Projects require bespoke, tailored solutions.Our specialisms include:

Dairy Consultancy Category Management

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