Released on = April 16, 2007, 3:24 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = The UK market for milk and dairy product grew by 9.3%
between 2000 and 2004, to reach a value of £7.72bn. The main sectors involved in
this market are those of liquid milk, cheese, yoghurt and chilled desserts, yellow
fats and cream.

Press Release Body =
Milk & Dairy Products

The UK market for milk and dairy product grew by 9.3% between 2000 and 2004, to
reach a value of £7.72bn. The main sectors involved in this market are those of
liquid milk, cheese, yoghurt and chilled desserts, yellow fats and cream.
Liquid milk continues to account for the largest share of sales although prices have
been kept down by many retailers as part of wider low-pricing strategies. In 2004, a
number of groups introduced branded milks, many promoted by stressing health
factors. These products offer a route to more added value in the market through
stronger differentiation.

The cheese sector has managed to grow year on year since 2002. Many consumers now
have more sophisticated tastes which has led to increased sales of a wider range of
varieties and regional products. The sector has also successfully introduced healthy
eating products. More recently, suppliers have been introducing more convenient and
portable products for eating `on the go\'.

Yoghurts and chilled desserts have been breaking away from a cycle of rolling
promotion by placing a greater focus on products and brands. Yoghurts continue to
benefit from a positive health profile with functionality adding a further dimension
to established low-fat criteria.

Yellow fats have seen more limited growth, although functional brands such as Flora
pro.activ have offered a new focus of interest and successfully targeted the UK\'s
ageing population. Cream has also managed some increase in value, with added-value
products again being the driver of such growth.

The UK dairy market is served by a wide range of suppliers ranging from large
integrated and international dairy co-operatives to smaller regional producers.
There has been some consolidation in the sector, with a move towards larger and more
vertically integrated businesses with a shorter supply chain.

There have also been some developments in the retail environment. The major
multiples, which account for the bulk of sales, have been reviewing their supply
chains. In 2004/2005 all the major players took the decision to either change or to
rationalise milk supply and the full impact has yet to be felt.



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