Farmgate milk prices stabilise after months of price cuts

A number of milk processors have announced price holds for July and August, with the market appearing to stabilise after more than six months of falling farmgate milk prices.

Arla is holding its on-account price for July at 35.12p/litre for a standard manufacturing litre, while First Milk is holding prices into August at 36.85p/litre, including the member premium.

Robert Craig, First Milk’s farmer director and vice-chairman, said: “While there continues to be uncertainty in the wider economy, dairy markets appear to be stabilising at present and we continue to work hard to maximise milk price returns for our members in the months ahead.”

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This point was reiterated by Paul Savage, agriculture director at Arla UK, who said that after a period of negativity, it was welcoming to see commodity markets recover and the outlook stabilising.

Dairy farmers supplying Barbers Cheesemakers will receive an increase of 0.75p/litre in August, putting its standard manufacturing litre at 37.79p/litre, based on 4.2% butterfat and 3.4% protein.

However, Muller has dropped its milk price by a penny in August to 37p/litre for a standard liquid litre of 4% butterfat and 3.3% protein.

Richard Collins, head of agriculture at Muller, said: “We must reflect continuing market pressure with supply remaining ahead of forecast. We remain committed as always to paying a competitive milk price and ensuring security of supply.”