In 2000, as a consequence of the de-regulation of the milk
industry, a number of regionally-based milk broking co-
operatives were created to buy milk from farmers and sell it
to the market. Milk Link Ltd is one such co-operative, which
is responsible for the South and West of England - and the
supply of 1.4 billion liters of milk per year.
Fragmented market
When Milk Link was established, the UK dairy supply chain was domi-
nated by large food retailers and a handful of large processors. At the
end of the supply chain were local farmers who had limited abilities to
extract value from their businesses. They suffered from low milk prices
and their future success depended heavily on the processors, the
retailers, and fluctuating market prices of related market commodities.
Limited capital to invest
'Milk Link decided that the best way to protect the future of their
farmers and milk price, was to participate in processing and integrate
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The Word
