Big Changes in Pattern of Liquid Milk Sales
Issued 16th May, 2002
While consumption of milk in Ireland has declined slightly in recent years, we are still among the highest consumers in the world, the Teagasc National Liquid Milk Conference was told today (Thursday, 16 May).
Pat Brophy, Chief Executive of Glanbia Dairies said that annual per capita consumption of milk is now 143 litres, down from 150 litres five years ago. Also, the industry is being increasingly dominated by supermarkets with a continuing decline in doorstep sales.
''Doorstep sales are falling by around 7% and the volume of milk sold by independent shops is declining by up to 25% per annum. In contrast, 'own label' milk sold by supermarkets continues to increase and now accounts for over 10% of the market'', he said.
Mr Brophy said the increase in long-life or UHT milk in Europe has quadrupled over the past two decades and now accounts for over 50% of European milk consumption. This development greatly increases the mobility of milk right across Europe.
He said the future for liquid milk sales will depend greatly on development of niche markets. In Portugal new 'health' milks have been developed for expectant mothers while in Switzerland milk enriched with vitamins and other 'health enhancing' characteristics has been successfully developed. He conceded that innovation to date in Ireland has not kept up with that in Europe.
Referring to the current controversy regarding milk price in Ireland, Mr Brophy said that 20% of liquid milk purchased by Irish consumers is sourced in Northern Ireland.
''Milk sourced in Northern Ireland can be purchased from farmers at €1.17 per gallon compared with €1.51 per gallon here in the Republic. This price differential has resulted in imports from the North doubling during the past two years.
''This price differential gives Northern processors or individuals with access to Northern supplies a big competitive advantage particularly in the growing own label supermarket sales'', he said.
''For the full conference papers, click here'
