How the milk haulage market will change
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• Currently, dairy farmers have to sell their milk through the Milk Marketing Board. Around 85% of milk haulage in England and Wales is carried out by four major players on behalf of the Board. These are: Co-Operative Wholesale Services; Northern Foods (through NFT Coldstream); Unigate (and subsidiary Wincanton); and the Milk Marketing Board subsidiary Dairy Crest.
The Agriculture Act this year has put the legislation in place to end the Milk Marketing Boat-4:1's monopoly and allow farmers to sell through three routes. These are: direct to milk users; through their own organisations; or to Milk Marque, which will handle the remains of the Milk Marketing Board's business. Milk Marque expects to mop up 75% of its own market following deregulation.
Despite the likely domination of Milk Marque, the shake-up frees both milk users and farmers to organise their own transport for the first time. The Milk Marketing Board estimates there ore around 20 different companies and organisations offering to buy milk direct from farms following deregulation.