Demands from the market with reference to supermarket chains
The production of milk has changed over the years. In the past milk was sent to a processing company and then delivered directly to the customers doorstep. By the late 1990s, large supermarkets were selling over 75% of all milk produced and they had a lot of buying power because they are able to buy in bulk. This put pressure on dairy farmers and almost half went out of business. More recently customers have been more concerned about where their food is coming from and how animals are kept and so supermarkets now have dedicated producer groups. A dairy farmer鈥檚 survival in business can now often depend on their relationship with large supermarkets.
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