In 1983–84, the final year before the introduction of quotas under EEC Regulation 857/84, milk production in Scotland was some 1406 × 106 litres. The disposal of that milk can be considered under two headings, namely (i) the liquid market and (ii) manufactured products. The former category encompasses all the milk—whole, semi-skimmed and skimmed—sold directly to the public via the doorstep delivery or retail outlets. It accounts for approximately 43% of the milk produced in Scotland, but commands the highest monetary return to the producer. The remaining milk goes to manufactured products, principally butter (and anhydrous milk fat), cheese, evaporated milk and cream. The price charged for milk for each of these outlets varies, but is always less than the amount received for milk destined for the liquid market.

In all but a small area of Scotland, one of 3 Milk Marketing Boards is, by statute, the first-hand buyer of milk from the farmer. The Boards, as organisations responsible to the farmers, have a common aim, which is to maximise the price they receive for milk. Each is heavily dependent on the liquid market, but they adopt different strategies in terms of manufactured products. However, the imposition of quotas with effect from 1 April 1984, and the consequent reduction in the total volume of milk produced in Scotland, has focussed attention on the need to manufacture milk products to the most exacting standards, in order that they command a premium in the market.