With Brexit, butter shortages and the boom in plant-based to contend with, it’s been another tough year for dairy. How is the industry coping?
Brexit and its associated uncertainty have made forward planning a challenge for every industry, and dairy is no exception. But despite this, the dairy industry is stronger than ever. As a category we increased both in terms of volume and value over the past 12 months.
Whilst consumers may have diversified their diets, dairy is still very much a fridge staple, with 98% of consumers using milk and 94% of UK adults purchasing cheese. There are few other industries that could boast such market penetration.
Can millennials learn to love dairy again?
Millennials have changed the way dairy is consumed. As a generation they’re much more open to trying new products and flavours and more likely to consume dairy on host foods or as ingredients than as stand-alone foods, but they still love the taste. Through our joint consumer campaign with the AHDB we sought to remind millennials of their love of dairy, with our results showing that those exposed to the campaign were 11% less likely to reduce their dairy intake.
What do you think is driving renewed interest in doorstep delivery?
A combination of factors – some consumers want their milk in glass and others like the convenience that doorstep delivery offers, plus there’s the increased choice of products available for delivery.
How are commodity markets faring?
This year has been a decent year for the commodity markets. Although butter prices were down from their 2017 peak the current price is still good. The same can be said for cream. The price for powder has lagged behind other dairy products but that’s due to stock overhanging the market. It remains to be seen whether the recent period of hot weather and drought may affect prices later this year.
Are you optimistic for the future of British dairy?
I’m very optimistic for the future of British dairy. Domestic demand for dairy remains high and global demand is still increasing. UK products, known for their great taste, range and quality, can take advantage of demand at home and overseas.
Of course, in order for the UK dairy sector to take full advantage of overseas demand for dairy products and ingredients, we need a very clear view on what post-Brexit export requirements will be and I would urge the government to provide that clarity.
What are you most excited about?
The dairy sector coming alive to diverse ways of communicating with younger generations of consumers is quite exciting and offers many opportunities. We have focused a lot on millennials in the last two years, but we’ve recently turned our attention to communicating with Generation Z and that’s something we’re really looking forward to.
No comments yet