A changing market but local produce still key to success of dairy industry

DRINKA Pinta Milka Day. So went the famous advertising slogan of the 1950s when the daily pinta was usually delivered to homes in bottles.

Over the years, milk bottles have been all but phased out along with the milkman and today only about 10 per cent of fresh milk bought in the UK is delivered to the doorstep.

The 1960s saw the rise of the carton and the beginning of milk being sold in large quantities in shops. In 1994, the government abolished the Milk Marketing Boards across the UK, allowing dairy farmers to sell their milk to whoever they chose to. There are now about 1,050 dairy farms in Scotland, down from about 2,500 15 years ago, but those that remain have expanded. Average herd size at 140-150 makes Scottish dairy farms the largest in Europe, with an EU average of about 17-25.

According to the Scottish NFU – the farming body – milk prices for farmers have gone up recently after some tough and frustrating years but Scotland and the UK are still below the average European price at about 27-28p per litre compared to about 32p per litre.

The bulk of fresh milk sold in Scottish supermarkets comes from Scottish farms.

“Provenance does appear to be important,” said a SNFU spokesman. “Knowing that its local, Scottish dairy farmers putting the milk in the cartons is important and the retailers would not do that if it did not mean something to customers.

“So it is a benefit to farmers that pretty much all fresh milk on supermarkets shelves in Scotland comes from Scottish farms.”

Another boost recently were the announcements by the Milk Link co-operative of a £20 million expansion of the Lockerbie creamery, and plans by First Milk for a new cheese-making facility in Campbeltown on the Mull of Kintyre.

Industry analysts DairyCo Datum said farmgate prices increased on average by 3.4 per cent in the first six months of the 2011/12 milk year, although year-on-year they are up by 11.6 per cent.

The average retail price for milk in multiple retailers increased to 56.6p per litre (ppl) in the same period (April to September), up from an average 56ppl in the preceding six-month period.

The increase was largely due to the reduction in multi-buy promotions, causing a rise in average unit milk price.

But the average retail price for milk remains low compared to averages over the last four years as a result of “price wars” among retailers.