Higher retail prices deliver value growth for dairy

Published 15 June 18

Rising prices led to year on year growth in retail sales value for dairy products, although total purchases saw only a minimal upturn. According to data from Kantar for the year ending 20 May 2018, the total dairy market saw growth of 4.9%, driven primarily from a 4.4% upturn in prices. Purchases rose by 0.5% in total, although performance was mixed across categories.

Retail Performance

Sales of butter and fresh milk contributed most to the £468k upturn in total expenditure, with each category growing by around £135k in value. However, the increased spend on butter was driven by higher prices (up 23.4%) while milk sales saw an increase in both price (up 3.7%) and in sales volumes (up 0.6%).

Cheese also added to the value growth, accounting for 21% of the total increase in expenditure. Similarly, higher average prices were the main driver behind this growth, although this limited volume growth to 0.7% year on year.