Only for further circulation/use in line with the terms and conditions printed on the back cover of this document.

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1 Market Intelligence Monthly market report September

2 Only for further circulation/use in line with the terms and conditions printed on the back cover of this document. 2

3 SUMMARY UK deliveries to dairies for August were 1,110m litres according to the latest provisional figures from the RPA, 1m litres (0.1%) more than August The Defra average farmgate price for the UK stood at 27.20ppl in July, 0.58ppl (2.2%) higher than the previous month and 2.91ppl (12.0%) more than the July 2010 price of 24.29ppl. Average blended 20:10:10 fertiliser prices increased by 3.2% to 320/tonne in August 2011 compared to July, making it 28.5% higher than in August % Ammonia Nitrate bag prices also increased rising 16/tonne (4.9%) to 345/tonne, making it 61.2% higher than in August Average feed wheat prices decreased between July and August to an average of 165/tonne, down 3/tonne (1.8%) compared to the previous month but 5/tonne (3.1%) higher than the average price in August Wholesale butter prices have fallen between August and July, although still remaining at levels higher than 12 months ago. World prices have fallen by 4.4% with EU and UK prices holding up slightly better. The price of UK butter fell by 2.8% between July and August to 3,500/tonne down 300 from previously record prices seen in the summer. The average spot price taken on August for UK bulk cream fell by 20/tonne (1.3%) in the last four weeks to 1,580/tonne. Cream income to a liquid processor decreased by 0.07ppl (0.8%) to 8.93ppl between July and August as a result. Powder markets have weakened further in August across global markets, with the exception of the EU whey powder market. World WMP prices fell by $200 (5.4%) to $3,500/tonne and World SMP fell by $150 (4.5%) to $3,200/tonne, 16.4% above levels in August Latest production figures from Defra show that on a cumulative basis, cheese production for the 12 months ending June 2011 is 25,430 tonnes (7.1%) higher than last year at 384,406 tonnes. Total milk sales by volume have increased year on year by 130.6m litres (2.6%) for the 52 weeks ending 07/08/11, to reach 5.2bn litres. Total sales by value fell however by 5.1% ( 172.9m) to 3.2 billion over the same period. 3

4 Section 1: On-farm 1.1. Deliveries to dairies UK (million litres) August 11 July 11 Monthly milk deliveries Cumulative milk supply Source: RPA diff. Jul-Aug August 10 diff ,110 1, % 1, % 5, , % UK deliveries to dairies were 1,110m litres in August according to the latest provisional figures from the RPA. Compared to the previous year, August deliveries are 1m litres (0.1%) higher than August On a cumulative basis, milk deliveries for the first five months of the 2011/12 milk year stood at 5,896m litres, 1.6% (91m litres) up on the same period last year. Provisional figures for UK daily deliveries in August have a rolling 7 day average of 35.4m litres/day for the week ending 31 August. This is 0.05% less than at the same period last year. Source: DairyCo GB (million litres) August 11 July 11 Monthly milk deliveries Cumulative milk supply diff. Jul-Aug August 10 diff % % 4, , % Provisional figures for GB deliveries of 949m litres were recorded for the month of August, 4m litres (0.4%) down on last year s level of 953m litres. On a cumulative basis, GB milk deliveries for the first five months of the 2011/12 milk year stood at 4,988m litres, 0.9% (46m litres) up on the same period last year. 4

5 1.2. Farmgate milk prices Average farmgate milk price (ppl) July 11 June 11 diff. Jun-July July 10 diff UK % % GB % % NI % % The Defra average farmgate price for the UK stood at 27.20ppl in July. This shows an increase of 0.58ppl (2.2%) when compared with the previous month. Annual comparisons show that the July 2011 price is the highest July farmgate price recorded and 2.91ppl (12.0%) more than the July 2010 price of 24.29ppl. The GB average farmgate price for July stood at 27.27ppl, up 0.55ppl (2.0%) on June s price and 3.04ppl (12.5%) more than July last year. The farmgate price in Northern Ireland (NI) remained below the GB average with a July average price of 26.84ppl, 0.74ppl (2.8%) up on the average price in June, and 2.20ppl (8.9%) more than the average price in July Source: Defra, DARD, DairyCo 5

6 In total, there were upward price adjustments made to six contracts in July. No price increases were announced on dedicated liquid supply contracts although there were increases announced by First Milk on its liquid contract and also Milk Link on its Cumbrian Direct contract. Price increases on manufacturing contracts for July included a 0.38ppl for producers supplying First Milk, a 0.75ppl increase for producers supplying Glanbia and a 0.86ppl increase for producers supplying Joseph Heler. Saputo and South Caernarfon followed with increases of 0.75ppl in August. Dairy Crest M&S announced a 2.31ppl increase on its dedicated liquid contract. In August, Wiseman launched a new dedicated contract to supply the Co-Operative. Looking forward, Milk Link announced a 1.00ppl adjustment across all contracts excluding Cumbrian Direct in September and Dairy Crest and Wiseman announced increases of 1.85ppl* each on liquid contracts. Milk price changes (ppl) Jun 11 Jul 11 Aug 11 Sept 11 Oct 11 Belton Cheese Lactalis/Caledonian Cheese Dairy Crest Liquid +1.85* Dairy Crest M&S Dairy Crest Davidstow Dairy Crest Sainsbury +1.85* First Milk Balancing First Milk Liquid First Milk Cheese First Milk H&I Glanbia Llangefni Grahams Dairies Joseph Heler Meadow Foods Milk Link - Cumbrian Direct Milk Link Llandyrnog Direct Milk Link Manufacturing Milk Link London Liquid Parkham Farms Payne s Saputo South Caernarfon Creameries Wiseman Partnership Wiseman Sainsbury Wiseman Co-Operative +1.85* +1.85* +1.85* *prices as reported and not necessarily reflected in DairyCo standard litre adjustments. 6

7 According to the DairyCo League Table 1, annual average milk prices in July ranged from 25.54ppl to 29.72ppl, a difference of 4.18ppl between the lowest and highest annual average price as manufacturing contracts have moved nearer towards liquid contracts in line with high wholesale prices Cow and calf prices From June 2011, the data source for cow and calf prices has changed. As a result only figures for Great Britain will be reported monthly. Friesian/Holstein ( /head) Freshly calved heifers Freshly calved cows Rearing heifer calves Rearing bull calves August 11 July 11 *Rearing calf not more than three weeks old % diff. Jul-August % % % % The GB average price paid for freshly calved heifers increased by 12/head (0.8%) between July and August to 1,526/head. Freshly calved cow prices increased in August, averaging 1,330/head, up 2.8% ( 36/head) compared to the previous month. In the calf market, the average price for Friesian/Holstein heifers increased by 4/head (10.0%) between July and August to 40/head. The average price of Continental-cross heifer calves increased by 11/head (6.8%) to 176/head and prices for Hereford-cross heifer calves increased by 13/head (12.0%) to 119/head. The average price for Friesian/Holstein bull calves decreased slightly by 0.1% ( 0.05) in August. Hereford-cross bull calf prices increased by 23/head (14.9%) to 178/head. The average price of a Continental cross bull calf increased by 21/head (9.9%) to 236/head. 1 The milk prices represent monthly averages for the DairyCo standard litre, which takes into account seasonal adjustments. 7

8 1.4. Round up of variable costs Oil prices OPEC Price (US$ / Barrel) Source: OPEC August 11 July 11 $ $ % diff. Jul-Aug -5.2% August 10 $ % diff % Latest figures from OPEC show that the price of oil decreased to $105.81/barrel in August, which was $5.81/barrel (5.2%) lower than the July average price of $111.62/barrel. Annual comparisons show an increase in the price of oil of $31.66/barrel (42.7%) from $74.15/barrel in August In Sterling terms, the August price of 64.65/barrel was down by 4.50/barrel (6.5%) on the previous month. Comparing prices to the previous year shows that the August price is 17.31/barrel (36.6%) higher than in August Monthly Oil Prices (OPEC) 130 US$ / Barrel Aug 11 Jun 11 Apr 11 Feb 11 Dec 10 Oct 10 Aug 10 Jun 10 Apr 10 Feb 10 Dec 09 Oct 09 Aug 09 Jun 09 Apr 09 Feb 09 Dec 08 Oct 08 Aug 08 Jun 08 Apr 08 Feb 08 Dec 07 Oct 07 Aug 07 Source: OPEC 8

9 Fertiliser prices Fertiliser prices ( /tonne) bagged August 11 July 11 % diff. Jul-Aug August 10 % diff :10: % % 34.5% N AN % % Source: Farmbrief The average price of blended 20:10:10 fertiliser increased by 3.2% to 320/tonne in August compared with July and is 28.5% higher than at the same time last year. / Tonne Blended Bags Aug 11 Jun 11 Apr 11 Feb 11 Dec 10 Oct 10 Aug 10 Jun 10 Apr 10 Feb 10 Dec 09 Oct 09 Aug 09 Jun 09 Apr 09 Feb 09 Dec 08 Oct 08 Aug 08 Jun 08 Apr 08 Feb 08 Dec 07 Oct 07 Aug 07 Source: Farmbrief 34.5% Ammonia Nitrate bag prices also increased, rising 16/tonne (4.9%) to 345/tonne between July and August The price is 61.2% higher than in August / Tonne AN (bags UK) Aug 11 Jun 11 Apr 11 Feb 11 Dec 10 Oct 10 Aug 10 Jun 10 Apr 10 Feb 10 Dec 09 Oct 09 Aug 09 Jun 09 Apr 09 Feb 09 Dec 08 Oct 08 Aug 08 Jun 08 Apr 08 Feb 08 Dec 07 Oct 07 Aug 07 Source: Farmbrief 9

10 Feed prices Feed prices ( /tonne) August 11 July 11 % diff. Jul-Aug August 10 % diff Hipro soyameal % % Rapemeal % % Feed wheat % % Intensive energy ration High protein concentrate Source: Farmbrief, HGCA The straights market mostly saw price decreases between July and August. Imported Rapeseed meal averaged 170/tonne in August, 13/tonne (7.1%) less than the previous month, and 12/tonne (6.6%) less than one year earlier. The average price for hipro soyameal averaged 268/tonne in August, which was also 5/tonne (1.8%) less expensive than the previous month, and 4/tonne (1.5%) less than in August Soyameal (Argentine/Bulk Ex Store) 300 / Tonne Aug 02 Nov 02 Feb 03 May 03 Aug 03 Nov 03 Feb 04 May 04 Aug 04 Nov 04 Feb 05 May 05 Aug 05 Nov 05 Feb 06 May 06 Aug 06 Nov 06 Feb 07 May 07 Aug 07 Nov 07 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Low High Average 2 per. Mov. Avg. (Average) Source: Farmbrief Average feed wheat prices decreased between July and August to an average of 165/tonne, down 3/tonne (1.8%) compared to the previous month but 5/tonne (3.1%) higher than the average price in August

11 Aug 02 Nov 02 Feb 03 May 03 Aug 03 Nov 03 Feb 04 May 04 Aug 04 Nov 04 Feb 05 May 05 Aug 05 Nov 05 Feb 06 May 06 Aug 06 Nov 06 Feb 07 May 07 Aug 07 Nov 07 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 / Tonne Feed Wheat (Ex farm) Source: Farmbrief Low High Average 2 per. Mov. Avg. (Average) The price of intensive energy rations stayed at 242/tonne in August, which is 24.7% higher than the previous year. Protein concentrates were also unchanged from July prices at 343/tonne, which is 15.5% up on year earlier levels. 270 Intensive Energy Dairy Feeds (Delivered) / Tonne Aug 02 Nov 02 Feb 03 May 03 Aug 03 Nov 03 Feb 04 May 04 Aug 04 Nov 04 Feb 05 May 05 Aug 05 Nov 05 Feb 06 May 06 Aug 06 Nov 06 Feb 07 May 07 Aug 07 Nov 07 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 Low High Average 2 per. Mov. Avg. (Average) Source: HGCA 11

12 Section 2. Wholesale markets 2.1 Exchange rates Exchange rate August-11 July-11 % Diff. Jul-Aug = % =$ % * all conversions used in the tables below are based on these figures Sterling increased against the Euro in August compared with July, with an average rate for the month of 1.14 to 1. In relation to the Dollar, the value of Sterling increased, with an average rate of $1.64 to 1 for the month Sterling v Euro Sterling v US Dollar Source: Oanda 12

13 2.2 AMPE August-11 July-11 % Diff. Jul-Aug Butter ( /tonne) 3,500 3, % SMP ( /tonne) 2,100 2, % AMPE (ppl) % IMPE (ppl) % * The price shown for IMPE relates to the first 24 days of the month Prices for butter fell by 2.8% between July and August to 3,500/tonne. SMP prices also fell to 2,100/tonne. As a result, the value of AMPE decreased by 1.4ppl (4.1%) to 32.3ppl for August The value of IMPE decreased by 2.1% to 18.9ppl AMPE vs average UK farmgate price Aug 06 Oct 06 Dec 06 Feb 07 Apr 07 Jun 07 Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Oct 09 Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 ppl AMPE Average UK farmgate price Source: DIN, Defra 13

14 2.3 Butter % diff. Price per % diff. 10- tonne August-11 July-11 Jul-Aug August World butter $4,300 $4, % $4, % 2,998 3,145 3,089 2,627 2,788 2,548 EU butter Dutch butter 4,000 4, % 3, % 3,506 3,705 3,091 French butter 4,000 4, % 3, % 3,506 3,634 3,016 UK butter 3,500 3, % 3, % EU 2,218 2,218 n/c 2,218 n/c intervention price 1,944 1,966 1,833 Butter prices weakened across all markets in August. On World markets, butter fell by $200/tonne (4.4%) to $4,300/tonne over the month; however this price is still 7.5% higher than prices seen in August last year. The EU butter market saw Dutch butter fall by 4.3% to 4,000/tonne and French butter fall by 2.4% to 4,000/tonne. UK wholesale butter price decreased between July and August by 100/tonne (2.8%) to 3,500/tonne; up 6.1% year-onyear. Butter prices 3,700 3,000 /tonne 2,300 1, Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Oct 09 Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Source: DairyCo World EU Dutch EU French UK 14

15 2.4 Cream % Diff. Jul-Aug % diff August-11 July-11 August-10 Bulk cream per tonne 1,580 1, % 1, % Cream income (ppl) % % The August bulk cream wholesale price is derived from talking to traders and milk processors on the days August and is based on an ex-dairy spot price for cream at 40% butterfat, for export. At 1,580/tonne, this spot UK bulk cream price is 20/tonne (1.3%) lower than the average spot price taken four weeks earlier in July. As a result the cream income to a liquid processor (based around this average spot price) has gone down by 0.07ppl (0.8%) to 8.93ppl from last month. 1,900 1,700 UK bulk cream price /tonne 1,500 1,300 1, Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Oct 09 Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 Source: DairyCo 15

16 2.5 SMP/WMP/whey powder % diff. Price per tonne % diff. 10- August-11 July-11 Jul-Aug August WMP World WMP $3,500 $3, % $3, % 2,440 2,586 2,549 2,138 2,292 2,102 SMP World SMP $3,200 $3, % $2, % 2,231 2,341 2,124 1,955 2,075 1,752 EU food grade SMP 2,150 2, % 2, % 1,884 2,994 1,736 EU feed grade SMP 1,990 2, % 1,990 n/c 1,744 1,853 1,645 UK SMP 2,100 2, % 1, % EU whey powder % % Powder markets have weakened further in August across global markets, with the exception of the EU whey powder market. World WMP prices fell by $200 (5.4%) to $3,500/tonne and World SMP fell by $150 (4.5%) to $3,200/tonne, although 16.4% above August 2010 levels. The most recent Fonterra auction on 6 th September showed an overall decrease of 1.4% across all products and contracts. EU markets have seen price falls for both food grade and feed grade SMP between July and August bringing prices to 2,150/tonne and 1,990/tonne respectively. The price of EU whey powder however, increased over the month by 1.3% to 780/tonne. UK prices for SMP fell by 4.5% in August to 2,100/tonne but are 200/tonne (10.5%) more than the same time last year. 16

17 Powder prices 2,750 2,500 2,250 /tonne 2,000 1,750 1,500 1,250 1,000 Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Oct 09 Dec 09 Feb 10 Apr 10 Jun 10 Aug 10 Oct 10 Dec 10 Feb 11 Apr 11 Jun 11 Aug 11 World WMP World SMP EU SMP - Food Grade EU SMP - Feed Grade UK SMP EU intervention price Source: DairyCo 17

18 2.6 Cheese Cheese price per tonne August-11 July-11 % diff. Jul-Aug August-10 % diff World market $4,300 $4, % $3, % Cheddar 2,627 2,695 2,357 EU market 3,800 3,800 n/c 3, % German Emmental 3,330 3,368 2,893 UK market Mild Cheddar 2,975 2,975 n/c 2, % Mature Cheddar 3,200 3,200 n/c 3, % World Cheddar prices fell between July and August, by 1.1% to $4,300/tonne. The EU price for Emmental remained stable at 3,800/tonne. In August, the UK Cheddar market saw mature Cheddar stand at 3,200 for the sixth consecutive month, while mild Cheddar remained unchanged at 2,975/tonne over the month. 4,000 3,500 3,000 Cheese prices 2,500 2,000 1,500 1,000 Aug 07 Nov 07 Feb 08 /tonne May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09 Feb 10 May 10 Aug 10 Nov 10 Feb 11 May 11 Aug 11 World Cheddar EU Emmental UK Mild Cheddar UK Mature Cheddar Source: DairyCo Latest production figures from Defra show that cheese production in June 2011 stood at 36,411 tonnes, 586 tonnes (1.6%) less than the previous year. On a cumulative basis, cheese production for the 12 months ending June 2011 is 25,430 tonnes (7.1%) higher than last year at 384,406 tonnes. 18

19 2.7 MCVE UK mild Cheddar per tonne UK whey butter per tonne UK whey powder per tonne August-11 July-11 % diff. Jul-Aug August-10 % diff ,975 2,975 n/c 2, % 3,200 3, % 3, % % % MCVE (ppl) % % UK mild Cheddar price remained at 2,975/tonne in August. Whey butter price on the other hand fell by 100/tonne (3.0%) from the previous month to 3,200/tonne; while the price for whey powder increased by 0.2% to 684/tonne. As a result, MCVE decreased by 0.07ppl (0.2%) between July and August to 32.84ppl. An annual comparison shows that in August, MCVE was 2.81ppl (9.4%) up on its year earlier value MCVE v AMPE PPL MCVE AMPE Source: DairyCo 19

20 Section 3. Retail markets 3.1 Liquid milk market Variant Own-brand standard milk (4 pints) Tesco Asda Sainsbury s Waitrose/ Ocado 1.49 (3 for 3) 1.25 (2 for 2) 1.49 (3 for 3) Unit price ppl av. 1.49* 63p (44p) Low fat milk (4 pints) 1.49 (3 for 3) 0.87* (2 litres) 1.49 (3 for 3) 0.89* (2 pints) 72p (44p) Own-brand organic milk (4 pints) Cravendale (2 litres) Own-label flavoured milk (1 litre) 1.25* 1.80 (2 for 3) 1.22* 1.55 (2 for 3) 1.50* 1.22 (2 for 2) 1.55 (2 for 3) 1.80 (2 for 3) 1.22 (2 for 2) 1.10* (2 pints) 1.80 (2 for 3) 1.30 (2 for 2) 72p (66p) 90p (75p) 124p (100p) Frijj (500ml) for * *Not currently on promotion Source: (as of 02/09/11) 1.20 (2 for 2) 1.49* 125p (108p) Promotions on own-brand standard milk (4 pints) remain the same over the month, with multibuy offers prevalent. Low fat milk has been put on 1.49, 3 for 3 offer in Tesco and Sainsburys. Own brand organic milk continues to be promoted with multi-buy 2 for 3 offers in Asda and Sainsbury s. Tesco has removed the multi-buy 3 for 3 offer on its organic 4 pint poly-bottle and instead lowered the price from 1.55 to Cravendale filtered milk has been put back on multi-buy promotion in most of the retailers, with Asda, Sainbury s and Waitrose offering 2 for 3. Asda has retained the low price Cravendale promotion at 1.50 for two litres. Own-label flavoured milk is currently on at 1.22 in Tesco, Asda and Sainsbury s, with a 2 for 2 offer in Asda and Sainbury s. Waitrose is offering the 2 for 2 promotion on own-label flavoured milk but at a higher price of Frijj is being promoted at 1.20 in Tesco, Asda and Sainsbury s, but Waitrose is currently offering Tesco is also offering a 2 for 1 promotion, and Sainsbury s 2 for 2. 20

21 Million Litres 5, , , , , , , , , ,800.0 Total Milk Sales 52 W/e 02 Dec W/e 27 Jan W/e 23 Mar W/e 18 May W/e 13 Jul W/e 07 Sep W/e 02 Nov W/e 28 Dec W/e 22 Feb W/e 19 Apr W/e 14 Jun W/e 9 Aug W/e 04 Oct W/e 29 Nov W/e 24 Jan W/e 21 Mar W/e 16 May W/e 11 Jul W/e 5 Sep W/e 31 Oct W/e 26 Dec W/e 20 Feb W/e 17 Apr W/e 12 June W/e 7 Aug 11 Source: DairyCo The most recent Kantar data shows total retail liquid milk sales by volume have increased year on year by 130.6m litres (2.6%) for the 52 weeks ending 07/08/11, to reach 5.2bn litres. Total sales by value fell however by 5.1% ( 172.9m) to 3.2 billion over the same period. 21

22 3.2 Cheese market Retailers promotional activity cheese Own-brand mature Cheddar (400g) Own-brand medium Cheddar (400g) Own-brand mild Cheddar (400g) Cathedral City Mature Cheddar (400g) Pilgrims Choice extra mature (400g) Seriously Strong Cheddar (400g) Wyke Farms Mature Cheddar (400g) Tesco Asda Sainsbury s Waitrose/ Ocado 3.45(500g) 2 for (500g) 2 for (500g) 2 for (350g) 2 for * 2.00* 2.00* 2.00* 2.00 (350g) for for for (350g) 2 for * (500g) 4.00 (500g) 3.79*(500g) 3.99(350g) 2 for 6.00 n/a 4.29* n/a 4.28* 4.28* 4.39* 3.39* n/a 3.00* (350g) *Not currently on promotion Source: (as of 02/09/11) n/a for 5.00 Own-brand Cheddar continues to be greatly promoted in Sainsbury s and Tesco with heavy multi-buy offers. Asda has retained its 2.00 offer for 400g on mature, medium and mild cheddar and Waitrose has only altered the price of own brand medium cheddar, up from 3.11 to 4.00 for 500g. Multi-buy offers on Cathedral City have been reinstated this month, with 3.99 and 2 for 1 on offer in Tesco and Sainsbury s and 3.99 and 2 for 6.00 in Waitrose. Cathedral City stands at 2.00 for 350g in Waitrose. Pilgrims choice remains largely un-promoted, with Tesco and Sainsbury s selling it for 4.49 and 4.29 for 400g respectively. Seriously Strong has been taken off multi-buy promotion in Sainsbury s and Tesco. Wyke Farms Mature Cheddar (400g) is on a 2 for 5 offer in Waitrose. 22

23 3.3 Yogurt market Retailers Promotional Activity - yogurt Benecol (4 x 125g) Danone Activia (4 x 125g) Müller light / fruit corner (individual - 175g) Own-label premium range (individual - 150g) Tesco Asda Sainsbury s Waitrose/ Ocado for for for for * 1.60* 2 for * for 3.00 *Not currently on promotion Source: (as of 02/09/11) for for for for * for for for 3.00 Multi-buy promotions continue to be the customary in the yogurt market, featuring extensively in Tesco, Asda, Sainsbury s and Waitrose. Benecol has been put back on multi-buy promotion in Sainbury s with 2 for 3.50, and Waitrose has reduced the price from 2.00 to Promotions on Danone Activia remain unchanged over the month; with high volume multi-buy offers. Müller fruit corners have been taken off the 10 for 4.00 offer in Asda and currently stand at 30p per individual item. Own-label premium range offers remain unchanged in Tesco and Sainsbury s; whereas Waitrose has increased its multi-buy offer from 4 for 2.50 to 5 for 3.00 and Asda has introduced a 6 for

24 3.4 Butter market Retailers Promotional Activity butter Anchor butter (250g) 1.60* Anchor spreadable (250g) Country Life (250g) Country Life spreadable (500g) Lurpack (250g) Lurpack spreadable (250g) Yeo Valley (250g) Own-label salted butter (250g) Own-label value butter (250g) Tesco Asda Sainsbury s Waitrose/ Ocado for * 1.60* 1.60* 1.60* 1.60* 1.60* for 2.40 n/a 1.50* 1.50* 2.68* 2.68* 2.68* for for for for * 1.60* 1.60* 1.60* 1.60* 1.50* 1.50* for * 1.38* 1.36* 1.38* 1.55 (250g)* 1.19* 1.10* 1.21* 1.10* *Not currently on promotion Source: (as of 02/09/11) Anchor butter has been taken off multi-buy promotion in Tesco, but put on a 2 for 2.50 offer in Asda. Lurpack butter (250g) is on a 2 for 2.50 promotion in Tesco, Asda and Sainbury s. Country Life butter (250g) has been put on 2 for 2.40 multi-buy offer in Tesco. Waitrose has put Country Life spreadable on multi-buy promotion, whereas Tesco has removed the 2 for 4.00 offer. Yeo Valley has been put on a 2 for 2.50 offer in Sainsbury s. Own-label salted butter has decreased in price over the month from 1.40 to 1.38 in Sainbury s, whereas own-label value butter has increased in price in Tesco and Sainsbury s. 24

25 Terms and conditions Agriculture and Horticulture Development Board ( AHDB ) Disclaimer: AHDB, operating through its DairyCo division, seeks to ensure that the information contained within this document is accurate at the time of printing. No warranty is given in respect thereof and, to the maximum extent permitted by law the Agriculture and Horticulture Development Board accepts no liability for loss, damage or injury howsoever caused (including that caused by negligence) or suffered directly or indirectly in relation to information and opinions contained in or omitted from this document. By requesting and receiving this information you agree to abide by the following terms and conditions. If you do not wish to be bound by the conditions then this information must be returned to AHDB and/or destroyed and not used in any further way. This analysis will be made available to any other individual, organisation or company that requests it. Any analysis that involves extrapolated numbers, analysis or comment on individual companies that could be considered controversial (as judged by AHDB) will have been seen by that company and it will have been given the opportunity to pass comment before publication in this document. Copyright, Agriculture and Horticulture Development Board All rights reserved. No part of this publication may be reproduced in any material form (including by photocopy or storage in any medium by electronic means) or any copy or adaptation stored, published or distributed (by physical, electronic or other means) without the prior permission in writing of the Agriculture and Horticulture Development Board, other than by reproduction in an unmodified form for the sole purpose of use as an information resource when the Agriculture and Horticulture Development Board [OR DairyCo] is clearly acknowledged as the source, or in accordance with the provisions of the Copyright, Designs and Patents Act All rights reserved. Agriculture and Horticulture Development Board Stoneleigh Park Kenilworth Warwickshire CV8 2TL Tel: Fax: