... time. Further more, the milk maybe foreign imported milk. This would be under cutting British agriculture and the government may enforce quotas (if milk not from EU) at a later date. If Sansy lowered prices in reaction to lower raw material costs then prices were raised again due to external taxes, consumers would loose faith in the brand and loyalty would be lost. Move over, the company is unsure of how long this period of cheaper milk will last. Therefore, if passing savings onto the customer in the short term, customers may expect these savings to continue regardless of the price of milk. This could affect profits in the long term. In addition, the reduced cost of milk maybe due to the business cycle. Milk is a staple food item and if the economy was in a period of recession and unemployment was high, milk prices may be lowered ...

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