Milk deliveries

Press, 24 June 1986, Page 20

Milk deliveries

Sir,—Could you please confirm (or otherwise) for me that, if home delivery was dispensed with, the price of a 600 ml bottle (carton) of milk would be approximately 30c, i.e., that a third of the present cost goes to sustain the home delivery service. If this is correct, then it follows that people like myself, who purchase their milk on the way home from work, are heavily subsidising those who have it delivered to the gate. — Yours, etc. JOYCE INGRAM. June 13, 1986. [The district manager of the Milk Board, Mr J. M. Duncraft, replies: “It is true that approximately one third of the cost of a bottle of milk is represented by distribution, which includes home and shop dairy delivery. If all milk were to be channelled through shops it is unlikely that there would be any significant reduction in total distribution costs. A distribution network would still be required to supply shops scattered widely throughout the country and the mark-up to shops would need to be increased to pay for the additional capital investment and running costs which shopkeepers would have to meet. While such a distribution network may be feasible, it is currently impractical, as shops do not have the capacity to handle large quantities of milk nor do they have sufficient storage and refrigeration facilities to protect milk quality. Apart from the economic considerations, a supply solely through shops could cause considerable inconvenience and expense for a large number of consumers by forcing them to make special trips to shops in order to purchase their regular milk supplies.”]