Milk contracts are an important issue for all dairy farmers and Newcastle University’s School of Agriculture, Food and Rural Development, supported by RABDF, has developed a survey that is aimed at helping to understand farmers' attitudes to their contract, their milk buyer, and the milk market.
This research aims to investigate two issues that are critical to the UK milk industry. The price behaviours of the UK liquid milk market since the industry’s deregulation, and also how prices have changed will first need to be determined. Following this, the investigation will turn to further understanding if this has influenced farmers’ decision making when it comes to selecting milk purchasers.
Milk purchasers claim that the liquid milk price premium once paid to UK milk producers through the Milk Marketing Board (MMB) no longer exists. That is, that new marketing arrangements that were put in place when the MMB was disbanded have driven the milk price down to its manufacturing value. However, there is evidence to suggest that some milk purchasers do indeed pay a liquid milk price premium.
There are many factors that influence farmers’ adoption of contracts, such as habitual tendencies, peer pressure and loyalty to firms, but there is a severe lack of information in regard to the UK milk industry. It therefore needs to be determined what is a good contract, which firms offer the best contracts, what are the reasons that farmers switch between buyers and how often do farmers switch between buyers?
The survey will provide the data needed to answer these questions and will provide valuable information as to whether or not the liquid milk price premium still exists.
To take part in the survey please click here or visit the other activities pages.
For more information, please feel free to contact:
Dr Jeremy Franks
School of Agriculture, Food & Rural Development
Newcastle University
Ph: 0191 222 7428
e-mail: j.r.franks@ncl.ac.uk
Liz Jackson
School of Agriculture, Food & Rural Development
Newcastle University
Ph: 0191 222 5084
e-mail: e.l.jackson@ncl.ac.uk