British public would pay more for milk to help struggling farmers

 Since the recession of 2009, British consumers have become increasingly price conscious
Since the recession of 2009, British consumers have become increasingly price conscious

82% of the British public say they would disappointed to see a reduction in UK dairy farming and would be willing to pay a little extra to support it, according to AHDB.

Among the 55 years and older age group, this rises to 91%.

More than three-quarters (76%) would do something to stop dairy farming significantly reducing, this score is at the highest level since the study was relaunched in July of last year.

More than half now say that they intend to buy more products with a quality logo; 43% are considering switching to a retailer that sells only British dairy products.

Further evidence of the growing sympathy towards dairy farmers can be found in attitudes towards milk price, AHDB said.

Further evidence of the growing sympathy towards dairy farmers can be found in attitudes towards milk price
Further evidence of the growing sympathy towards dairy farmers can be found in attitudes towards milk price

Since the recession of 2009, British consumers have become increasingly price conscious, so it is significant that a substantial majority say they would be willing to pay more for their milk.

For a standard 4-pint container of milk, 46% would be willing to pay at least 11p more.

Perhaps the most meaningful number is the meagre 8% who would not be prepared to pay any extra, the report said.

19% of those asked said they would be willing to pay up to 20p more for their milk, with 27% saying 11p-20p more.

Outcome is 'historically low levels' for milk prices

While many respondents say that they would pay more for milk and buy British dairy products, it is possible that this may not manifest itself in significantly higher sales.

When researchers IGD asked consumers about what drove product choice, price and freshness were most important, origin and ethics were the least important.

The grocery retail environment has become increasingly competitive.

Products that have high household penetration and are bought most frequently, are the focus of the competitive response of the big retailers to the threat of the hard discounters.

The outcome for milk is retail prices at historically low levels.

The rapidly evolving grocery retail world met with another twist in autumn last year, when Morrisons launched ‘Milk For Farmers’.

At the centre of this scheme is the guarantee that a specific portion of the selling price will be paid to the farmer.

This presents consumers with the opportunity to support British dairy farmers.

Cream, cheese, butter and bacon have since been added to the ‘For Farmers’ range, which is a sign that Morrisons judge the project to have been a success.

Asda has formed a partnership with dairy cooperative Arla, to put a similar programme in place in their stores.