Milk prices up again but output not following suit
There has been another round of milk price increases, taking values to their highest since early 2023, when they were on the way down.
Arla and Muller raise prices
Muller has announced a 1ppl rise o 42.25ppl from November 1. READ MORE
Arla has confirmed its October milk price for conventional and organic milk will increase by 1.69ppl, taking the conventional milk price to 45.02ppl. READ MORE
Check out the latest daily and monthly milk deliveries on our market prices hub
Anger builds as Lactalis serves notice to 12 dairy farmers
NFU Scotland has expressed its ‘anger and disappointment' at the decision taken by dairy processor Lactalis to serve notice without warning on 12 of its dairy farmer suppliers in South West Scotland.
The 12 producers – 10 in Dumfries and Galloway and two in Ayrshire – have been given 12 months' notice. NFUS said it has been told the decision was taken following a business review of Lactalis' milk supply in South West Scotland.
Labour shortages making farmers consider futures, says Arla
Difficulties recruiting staff on dairy farms means more farmers are considering leaving dairy, with others looking at cutting production or herd size.
According to a survey from Arla, more than half of Britain's dairy farmers are finding it more difficult than ever to recruit.
Paul Dover, UK agricultural director, said 16% were considering leaving dairy, up from 12% last year.
Freshways raises October and November prices
Freshways has confirmed milk price increases for both October and November, with a 1ppl increase each month.
This will take the price to 41ppl for October and 42ppl for November.
The dairy said the increases reflected ‘the favourable changes in demand and overall market trends we have recently observed'.
In a letter to farmers, managing director Bali Nijjar said: "We believe that this adjustment not only rewards dairy farmers for their hard work and commitment but also contributes to the sustainability of our farming practices."
Mr Nijjar said the planning and development of its new site in West Bromwich was progressing well.
He also provided an update on its acquisition of the Milk and More business.
"Although last year's losses exceeded £20 million, I can confirm that the business has been profitable so far this year. We anticipate further positive news in the coming weeks."
First Milk October milk price to increase 0.6ppl
First Milk has announced that from 1st October 2024 its member milk price will increase by 0.6ppl to 42.6ppl for its manufacturing standard litre, including the member premium.
Mike Smith, vice chair and farmer director, said: "We are delighted to raise our milk price once again, which we are able to do because of the continued healthy performance of our business. This is more welcome news for our members as they head into the Autumn, following challenging on-farm conditions from Spring and all through Summer."
Arla announces September price rise
The Arla on-account price for conventional milk will increase by 0.89ppl for September 2024. The UK organic milk price will also increase by 0.89ppl.
This means the UK manufacturing price for conventional milk will increase to 43.33ppl and organic milk to 54.20ppl.
Muller increases October price
Muller has confirmed its farmer suppliers will receive a milk price of 41.25ppl for October, an increase of 1ppl. This price includes the 1ppl Muller advantage premium, which is paid quarterly in arrears.
It follows a 1.25ppl increase for September.
Organic Herd increases member milk price to 56ppl from October
Organic Herd has confirmed a 2ppl increase in its member milk price from October 1, taking its price to a record 56ppl on a standard litre basis.
It means the price has been either maintained or increased on a continuous basis since October 2021.
The co-op said the latest price rise reflects the increasing value being placed on, and growing demand for, British organic dairy products.
Martyn Anthony, Organic Herd chief executive said: "Our strategy remains one of creating long term stability and growth, by generating returns to farmers that reflect the true value of, and demand for, the high quality food we produce, not a milk price that simply mirrors the ups and downs of conventional commodities.
"Our latest increase therefore reflects Organic Herd's commitment to paying a stable and sustainable milk price to both the current and next generation of dairy farmers."
It follows a period of recruitment for the co-op, with both organic and converting producers signing up as well as new entrants to dairy.
Sara Ogborne Organic Herd director of membership and communication said they were receiving ‘great interest' across the country.
"What is striking when talking to these younger and highly ambitious farmers is that, although today's milk price is important to them, they are equally striving being part of a stable, sustainable supply chain.
"The recurring message is that they want to be part of a sector that is focused on long term value creation, rather than accepting the norm of volatile milk prices which can be so detrimental to their business."
Meadow increases milk price by 1.5ppl in September
Meadow has announced it will be increasing its standard litre milk price to 40ppl from September 1 in response to growing positivity in the dairy markets, and an improvement to cream and butter prices.
The latest Global Dairy Trade (GDT) auction saw a modest overall increase of 0.5%, despite the holiday season when trading is typically quieter, however skim milk powder prices continue to remain under pressure.
Jonathan Evans, head of farms at Meadow, said: "We understand the cost pressures still being faced on farm and are pleased to have been able to pass on further milk price increases to our producers. We will continue to closely monitor the situation."
Muller farmers receive milk price increase for September
Dairy farmers supplying Muller who meet the conditions for Muller Advantage will receive a milk price of 40.25ppl from September 1 2024, a 1.25ppl increase.
Richard Collins, head of agriculture at Muller Milk & Ingredients said they understood the 'pressures that hard working dairy farmers are facing into', adding the market was looking 'stable'.
Full story here
Barber's announces September milk price rise
Barber's Cheesemakers has announced a 0.61ppl increase in its September milk price, taking its price to 42.41ppl at the manufacturing league table as published by milkprices.com.
In a letter to suppliers, it said this year has been a ‘remarkable one' both in terms of weather and milk price, with eight increases so far.
"Whilst the incremental increases may be lower, the eight increases in a year for 2024 now equals the number of milk price increases in the historic milk year of 2022," it said.
It said it meant it retained its position as the UK's leading milk for cheese agreement (non-retail aligned).
Having suspended the 2024 base milk volume element of its Barbers Assured Agreement it will be paying for any extra litres above 105% of base milk volume at the Barber's price not AMPE.
"Unusually, despite the difficult milk supply conditions this year, our milk price has been above the AMPE price for every month of the year, with AMPE actually falling in value for July (vs June)," it said.
Should AMPE rise above the price between now and the end of the year, the cheesemaker said it would pay the higher price on any litres involved.
It also acknowledged that A and B pricing was a hot topic of debate with the new Government contract legislation.
"We have operated our two-tier pricing since February 2017. This has provided both an incentive if AMPE was above our standard price, or a disincentive, should AMPE be below and helps balance supplies," it said.
"However, this is the first year that such a disconnect has materialised between our prevailing price and AMPE.
"What also makes our scheme unique has been we have always provided a base of 102% or 105% (depending on the time of year) of your own allocation/per month, whereas many competitor schemes in operation in our region have a threshold of just circa 90% and any extra litre supplied attracts the ‘B price mechanism'. That 10% can make a very big difference."
It added this had been important as due to provenance claims, it needed to plan ahead as it did not have the flex to balance with external supplies.
Milk price increase for Arla farmers
Ãļ§Ö±²¥ supplying Arla will receive a milk price increase for both conventional and organic milk. From August 1 2024, the Arla on-account price for conventional milk will increase by 0.74 ppl. The UK organic milk price will increase by 0.74 ppl. This means the UK manufacturing price for Arla conventional milk will increase to 42.44 ppl and organic milk to 53.31 ppl.
Full story here
First Milk increases September price
First Milk has announced its milk price will increase by 1.0ppl to 42.0ppl for its manufacturing standard litre, including the member premium from September 1.
Commenting on the announcement, Mike Smith, vice-chair and farmer director, said the announcement would be welcomed by farmers who have faced challenging conditions over the past months.
He said: "Whereas global and European dairy markets are relatively stable right now, many of our members are continuing to deal with the negative impact that the high rainfall and lower temperatures experienced in spring and early summer have had on grazing and winter forage production.
"As such, this further strengthening of our milk price for September will be welcome news."
Muller serves notice to farms not meeting standards or supplying low volumes
Twenty six dairy farms supplying Muller have been served their 12 month notice.
Muller has confirmed that the affected farms were either not continually meeting its high standards of sustainability or welfare or provide them with low volumes of milk. Affected farms have been in discussions with Muller.
First Milk increases August price
First Milk has announced its member milk price will increase by 0.7ppl to 41.0ppl for its manufacturing standard litre, including the member premium, from August 1.
Mike Smith, vice chairman and farmer director, said: "There has been recent positive momentum in global dairy market prices driven by sentiment, which now appears to have stabilised.
"Many of our members continue to face challenging on-farm conditions, with unpredictable weather continuing to impact forage availability both now and potentially for the upcoming winter.
"As a result, we are pleased to announce this increase to our milk price at this time."
Arla announces July milk price rise
The price for conventional and organic milk will rise for organic suppliers from July 1.
Arla has announced the on-account price for conventional milk will increase by 0.81ppl for July 2024. The UK organic milk price will increase by 1.70ppl.
This means the UK manufacturing price for conventional milk will increase to 41.70ppl and organic milk to 52.57ppl.
The quarterly currency exchange rate adjustment negatively impacts the on-account price in ppl by 0.08ppl.
Organic Herd announces further Member milk price increase for August
Organic Herd, the British farmer-owned co-operative dedicated to organic dairy, has announced a 3ppl increase in its Member milk price effective from August 1. The latest increase takes the Organic Herd price to 54ppl on a standard litre basis.
This follows a 1ppl increase for July for the organic co-operative's Members.
Martyn Anthony, Organic Herd's Chief Executive said: "Our latest price increase reflects that domestically and in our major export markets demand for organic dairy is strengthening while supply remains relatively constrained."
Organic Herd confirms increase in Member milk price for July
Organic Herd, the leading British farmer-owned cooperative dedicated to organic dairy, has announced a 1ppl increase in its Member milk price from July 1.
The increase will take the Organic Herd price to 51ppl on a standard litre basis.
Sara Ogborne, Organic Herd's director of membership and communication said: "Our latest price rise reflects the growth in demand we are seeing for our organic milk."
"The July increase is in line with our commitment to returning to our Members incremental but, crucially we believe, also sustainable improvements in their milk price."
Milk prices head over 40ppl following wet spring
Milk prices are rising following the wet spring and a strengthening global dairy market, with major processors across the UK announcing improved June and July prices, with some heading over the 40ppl mark.
And the wet weather was continuing to take its toll, despite the Met Office declaring May the warmest on record, with producers having to bring herds inside due to rain.
On Tuesday the average price on the Global Dairy Trade auction rose by 1.7 per cent the fifth increase in a row, to US$3,824/tonne (£2,990/tonne), the highest price since October 2022. Butter prices were up 1.7 per cent, cheddar 0.2 per cent and skimmed milk powder 3 per cent.
Freshways announces August increase
Freshways has announced a 3ppl milk price increase from August 1, taking its standard litre price to 40ppl.
It follows a 2ppl increase from June 1.
In a letter to farmers, managing director Bali Nijjar said the reason for the delay was due to a ‘number of factors'.
These were contractual commitments to customers, the annual flat sales expected through June and July, the increase already being actioned from June 1.
He also highlighted the continued competitive nature of liquid milk through the flush period.
Barber's announces July milk price increase
Cheesemakers Barber's has raised its July milk price by 1.03ppl, taking its price to 41.28ppl.
In a letter to farmers, it highlighted the challenging weather ‘with two inches of rain in much of our region in the past week'. It said many had housed herds again in the last week away.
"Whilst grass growth is still rapid, managing this is again testing many, with silage so far ensiled and awaiting to be cut to be fed later this winter unlikely to set new records for feeding quality, or for milk production.
"Milk supplies have remained subdued across the entire continent during 2024, and this is likely to continue," it said.
"These factors combined is driving the current dairy market improvement and has influenced our sixth milk price increase announcement made so far this year.
"We remain in constant dialogue with customers to explain the difficulties on farm to help support longer term supplies."
Arla announces June increases
Arla has confirmed its on-account price for conventional milk will increase by 0.44ppl for June 2024. The UK organic milk price will increase by 0.89ppl.
This means the UK manufacturing price for conventional milk will increase to 40.89ppl and organic milk to 50.87ppl.
Muller announces 1ppl July milk price rise
The dairy will pay 39ppl for July, including the Muller Advantage premium.
Read the rest of the article here.
Mona Dairy fails to source sufficient funding
Anglesey cheese producer Mona Dairy has confirmed it has failed to source sufficient short-term funding from its key stakeholders to ‘keep functioning in its current form'.
It said it remained hopeful it could secure a new outcome and Mona Dairy would be able to continue its journey, even under new ownership.
Read the rest of the article here.
What are the opportunities for UK dairy exports?
Dairy production is under pressure in countries that are key suppliers to the UK, which could present opportunities for the British dairy industry.
The UK is a major importer of dairy products. In 2023 it imported £3.603 billion worth of milk, cream, butter or milk fats and cheese, according to HMRC figures. That was 6.1 per cent more than the year before.
Read the rest of the article here.
Arla increases conventional and organic milk price for May
Arla has announced a 0.45 ppl increase for conventional milk and a 1.34 ppl rise for organic milk.
From May 1, Arla farmers supplying conventional milk will receive 40.45ppl and organic Arla farmers will receive 49.98ppl.
See also: Muller announces 0.5ppl milk price rise for June
Milk price
Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: "Global milk supplies continue to be slightly lower, retail sales continue to rise and commodity markets are stable.​ In the UK, the organic milk price increase is driven by growing demand. Overall, the outlook is stable."
Dairy farmers
Bas Padberg, UK managing director added: "As a farmer owned cooperative it has been a busy time in our democratic calendar, we have been meeting and having some engaging discussions with our members countrywide and as part of this we have been holding our elections to select our board of representatives for the next term.
See also: Retail inflation still higher than farmgate price changes
"This month we also announced a significant UK acquisition in the Arla Foods Ingredients business, of the Volac Whey Protein business subject to CMA approval. As one of the biggest food companies in the UK, it is just the latest move we have made to build a more sustainable future for dairy and our farmer owners."
Muller announces 0.5ppl milk price rise for June
Muller dairy farmers will receive a milk price of 38ppl from 1 June 2024, a 0.5ppl increase. This includes the 1ppl Muller Advantage premium, which is paid quarterly in arrears.
Milk price
Richard Collins, head of agriculture at Muller Milk & Ingredients said: "We recognise the challenges being faced this Spring and will continue to monitor supply and demand in the coming months to ensure we support our supplying farmers."
See also: Dairy-Tech - "We must get our story right and protect the image of dairying"
Butter prices show first sign of strengthening as others wait for the flush
These real market prices have also been boosted by the futures markets, which have positively soared by over €350 (£300) over the last two weeks to top €6,000 (£5,149) again. It has not been at this level since February.
SMP prices are not rising in line with fat prices, however, and demand is extremely weak. Prices remain below €2,400 (£2,050).
Cream prices are falling in the UK in line with the flush, and are now well below the £2.00/kg threshold. They are unlikely to recover significantly until the flush has passed. It is the same story for spot milk prices – they are down to around the 30p threshold or even below.
Read the rest of the article here.
Wet spring helps to stabilise dairy markets
Ãļ§Ö±²¥ and growers are getting increasingly frustrated and concerned over the wet spring, which is on track to be one of the wettest in living memory, and if the situation does not change for the better soon, the inflationary repercussions will surely be felt later this year.
On the flip side, and on a more positive note, the poor weather has helped demand to remain steady while helping to keep a check on seasonal milk production.
Read the rest of the article here.
Milk prices increase heading into spring
For some, it will be the first time they have had their wallets out this year due to their price competitiveness, while for those coming up from a lower winter price base, an April increase makes it four increases in four months.
Spring price increases are not as uncommon as one might think. While the sheer number of spring increases in 2022 at the start of the Russia/Ukraine war was an exception, several milk buyers have historically made positive moves in Q2.
Read the rest of the article here.
Arla to cease dairy production at Melton Mowbray site
Arla has ceased production at one of its sites in Leicestershire which has been making dairy products such as stilton cheese for over 200 years.
The farmer-led creamery confirmed it would be stopping production at its Tuxford and Tebbutt Creamery site in Melton Mowbray on June 25, with around 60 jobs at risk.
