Retail price cuts led to a fall in consumer spend on milk – AHDB Dairy analysis

Published 24 August 15

In response to questions from farmers and comments in the media around the current low farmgate prices and as well as discussions in the industry around retail milk price decisions, AHDB has undertaken a piece of analysis which can be viewed below.


The slides look at the role that milk plays in the retailer offer, the views of the consumer towards milk prices and the correlation with farmgate prices. The analysis finds that the price cuts instigated by retailers during the period analysed did increase the volume of milk sales but also led to a fall in overall spend. It also compares the position at retail level with that at farmgate level – where the range between the highest and lowest milk prices received by farmers is still unusually large