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Dairy Market 2013- 14

The Dairy Market 2014

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Hamish Renton of HRA Associates looks ahead at what's happening in the Dairy Market for 2014. He looks at the commodity market and how the GDT is effectively becoming the world stock exchange for the Dairy Market. Hamish also looks at flavoured Milk category and the Cheese market and Jess House, analyst at HRA, talks about what the future holds for the Butter Industry

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Page 1: The Dairy Market 2014

Dairy Market 2013-14

Page 2: The Dairy Market 2014

The Commodities Market

• GDT becoming world stock exchange for dairy

• Butter, whey, cheddar, SMP all being traded internationally

• Dairy prices are increasingly being set by the GDT

Page 3: The Dairy Market 2014

Mergers and Acquisitions in Dairy

• Big changes in own label cheese

Page 4: The Dairy Market 2014

Flavoured Milk

Protein drinks• Historically drinks made up

at home

• Now moving towards ready to drink

Page 5: The Dairy Market 2014

Flavoured Milk Cont.

• Value sales up 9.3%

• Volume sales up 5.6%

• Total category - £119m

Why?• Lots of new entrants to

market• Promotions in store

Page 6: The Dairy Market 2014

Capacity Balance

• Too little milk, processing assets not utilised

• Too much milk, unable to process.

• Milk supply affected by weather, seasonality, demand and prices

Page 7: The Dairy Market 2014

Butter

• Arla moved production to Westbury (Anchor)• Muller Wiseman opened up in Market Drayton• Dairy Crest moved butter packing into Kirby

Page 8: The Dairy Market 2014

Butter Cont.

• British Provenance increasingly being used to inspire brand loyalty

• Value sales of diet spreads down 4.1% due to fear of additives and E numbers

• Opportunity for healthy, natural spreads

Page 9: The Dairy Market 2014

Fresh, Doorstep and UHT Milk

• UHT sales down

• Doorstep milk down

• Fresh milk up - £5.2bn, volume growth 1.5%

Page 10: The Dairy Market 2014

Milk Cont.

• Explosive growth in Lactose Free

• Yoghurt, butter, milk, cream

Page 11: The Dairy Market 2014

Milk Cont.

• Massive investment in liquid milk:– Severnside, Dairy Crest– Aylesbury, Arla– Muller Wiseman

Page 12: The Dairy Market 2014

Quotas in 2014Abolition in 2015

Market tightens in responseWill the UK have enough milk supply to

respond?

Looking to 2014

Page 13: The Dairy Market 2014

HRA – The Dairy Specialists

We understand the whole supply chain

Milk Supply

Processors

Retailers

Consumers

Page 14: The Dairy Market 2014

HRA – A Pathway to Success

• Projects require bespoke, tailored solutions.Our specialisms include:

Dairy Consultancy Category Management

Marketing & Branding Sales & Distribution

Market Research Packaging

Page 15: The Dairy Market 2014

HRA – Recent Projects

Page 16: The Dairy Market 2014

Contact Us

Address Rockwood House, Parkhill Road, Torquay, TQ1 2DUPhone 01803 203387E-mail [email protected]