UK milk prices and farmers' attitudes towards them since market de-regulation

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Abstract:

Examines UK milk pricing since market deregulation in November 1994. Finds a wide range of milk price contracts on offer, with many processing companies paying prices above those paid by the voluntary farmer co-operatives. Looks at the factors influencing dairy farmers' initial choice of milk supply contract in the months preceding deregulation of the UK dairy sector in November 1994. Finds around 70 per cent of farmers surveyed, slightly above the percentage for all milk producers, signed to supply the voluntary farmers co-operative, Milk Marque. Then surveys farmers to identify those who have switched supply contract during the year, finding little evidence of movement. Attempts to understand the apparent differences between farmers' expectations in their initial contract choice and the market realities they have experienced over that period.

Keywords: Contracts; Dairy Industry; Deregulation; Milk; Prices

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/00070709710165188

Publication date: February 1, 1997

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