WHOLESALE milk supplies are higher this year than in the previous two.

Graham Wilkinson, Arla Foods UK agricultural manager, said they had seen an increase in volumes from farms coupled with fewer farm retirements.

However, he told the NFU’s North-East Regional Dairy Board, at the Crown Inn, Roecliffe, that the 1.5 per cent annual decline in milk consumption had continued.

Less milk was being used for tea and coffee, but more was being used on cereals.

Mr Wilkinson, who is based at Arla’s headquarters in Leeds, said it was a reminder about milk’s reliance on other products.

He showed the meeting evidence of the marked decline in milk as a drink once a child is over five.

It was a concern as, left unchecked, it would have a knock-on effect on future generations.

The dairy industry has launched a £9m, three-year milk campaign to try to reverse the trend.

Pop star Pixie Lott and chef Gordon Ramsay have already featured and this month Formula One racing champion Jenson Button and supermodel Elle Macpherson are to sport milk moustaches.

Mr Wilkinson said the campaign aimed to change the perception that milk was boring and not cool and encourage people to drink milk away from their home.

Work being carried out with Leeds University indicates that milk hydrates sportsmen and women as well as, if not better than, energy drinks.

Mr Wilkinson said Arla’s recent announcement that it was investing £150m in a new dairy near London showed its commitment to the dairy sector and UK farmers.

The dairy, which has a 2012 start-up date, is expected to be the largest and most technically advanced in the world.

It follows Arla’s £70m investment in fresh and cultured cream and cottage cheese production at Stourton.

Mr Wilkinson said Arla and Tesco’s dairy farmers met more than 20,000 Tesco shoppers during their summer road show.

He spoke of the changing habits of consumers and the fact that this year, at any one time, 28 per cent of dairy products are on promotion – the highest level ever.

Arla aims to make Cravendale milk a top ten grocery brand by 2020.

The top ten includes Coca Cola, Warburtons, Walkers Crisps, Andrex Toilet Rolls, and Cadbury’s Dairy Milk.

Mr Wilkinson cited Lucozade as an example of what could be achieved – originally a drink given to patients in hospital, it now has a new and modern image.