Consolidation to continue in UK dairy

Difficult times may lie ahead for the UK’s major milk processors and dairy coops, according to a report by food industry analyst Richard Workman of Oriel Securities.

In fact, with only four major retailers to supply, they are unlikely to survive much longer, notes Workman.
According to the report, the industry has a wide range of problems and is facing the danger of a price war in the supermarkets. Even the well-run Robert Wiseman Dairies’ future prospects look limited. This, suggests Workman, is because its leading position in Scotland is being undermined by Arla Foods, along with its heavy involvement with milk and little else.
The outlook for Dairy Farmers of Britain and Milk Link is not much better, as Workman reckons they have spent heavily on a