The milk processing industry is limiting its opportunities by concentrating on a few high-capacity supermarket dairies, according to Dairy Farmers of Britain chairman Rob Knight.

By pushing for ever-greater processing efficiencies, processors were at risk of neglecting the growing demand for local food, King said. They should also develop a network of processing facilities that could flexibly and swiftly switch between market outlets, and respond quickly to changes to production lines.

"In modern consumer marketing, being fast on one's feet is as important as ensuring the lowest cost of goods," said Knight.