CSR - The Mega Dairy, Economies of Scale and Cornflakes

This is a terrific, topical case study that you can use with students to examine a range of important business studies topics - not the least economies of scale, CSR and market structure.

Will the UK soon be home to so-called mega-dairies? The UK dairy farming industry is in significant trouble - many farms are closing, threatening supplies to the UK’s major supermarkets. Might the solution be factory-farming style dairy farms on a scale (3-8,000 cattle which can produce over 100,000 litres of milk each day) which are many times larger than the traditional farm in the UK.

The BBC ran this radio feature on the topic in late 2010. Well worth a listen.

The Guardian reported last week that plans to build a huge, US-style “mega” dairy farm in Lincolnshire have been withdrawn. But the proposals will probably be back given the capacity issues in UK dairy farming.

Protestors have not been slow to address the issue of mega dairies. This new music video takes one approach to opposition, tugging at the heart strings of the typical UK consumer who simply wants some traditional farm-produced, fresh milk on the breakfast cereals…

Some great, corny lyrics too;

Your love is in my cornflakes..
My milky mornining coffee says I miss you so!

I was your farmer
And I was your cow
I miss your sweet breath
...and I miss watching you plough!