Consumers react to dairy price crisis
Newsfeeds have been flooded with reports of dairy companies asking Australian farmers to repay them based on lower than expected global demand. But has the message made it to consumers?
Yes, according to a recent Colmar Brunton survey that showed consumers are buying more milk in response to the dairy price crisis
Results showed that behaviour has changed, with 17 per cent of the respondents increasing the amount of money they spend on milk, with national brands Dairy Farmers, Pauls, Devondale, a2 and Farmer’s Own reaping the greatest reward.
A further 8 per cent have adopted the strategy of increasing the amount of milk they drink, with relatively higher volumes for Coles and Woolworths branded milk.
“These results show empathy for Australian Dairy Farmers and Australian consumers doing what they can to help. We are spending more on brands or drinking more milk. But will these efforts be effective and how sustainable are they? This remains to be seen,” Denise Hamblin, research director for FMCG.
Virtually everybody (98 per cent) has heard the news, the survey has showed. But less than half (40 per cent) were able to name the dairy companies seeking compensation, and only a quarter were right (13per cent Murray Goulburn, 12 per cent Fonterra).