how efficient is the UK dairy industry?
65. So far we have addressed the issue of dairy farmers being unable to identify conclusively what proportion of a retail price increase has been passed back to them along the supply chain. However, there are broader issues about the overall structure and efficiency of the dairy industry which should also be addressed in order to enable dairy farmers to utilise more effectively the share of the retail price that they do currently receive. It is in the interests of all players in the dairy industry to address these broader issues so that, ultimately, the dairy supply chain will be more efficient and farmers will be in a position to command a greater share of the retail price. 66. A key conclusion of the KPMG report was that that the dairy industry, at both processing and milk producing levels, was not as efficient as it could be. The report concluded that, while the liquid milk processing sector was probably operating efficiently, other processing sectors were operating less efficiently
