Will the cautious approach continue to work for first milk?

摘要

One of the UK's largest farmer-controlled milk co-operatives believes that the road to sustainable long-term profitability for the dairy sector will be one of quiet evolution and not revolution: the gradual merger of milk supply and processing capacity into an indivisible entity. But the concept of vertical integration as a key method of reinvigorating a sector which has suffered more than most in the face of the burgeoning buying and market power of the supermarkets is not a new one. First Milk's strategy, however - the cautious move into processing via a series of buy-ins and partnerships with established processing companies - is one that has clearly worked for the milk supply giant. First Milk's litmus test for each business development is a simple one: would the venture produce what the consumer wants? Would it boost company profitability and open up new market opportunities? And, crucially, would it add value for its 3,600 farmer members?