Processors hold milk prices into August and September

Several milk processers including Arla, First Milk, and Saputo Dairy have confirmed price holds for the coming months.

Prices have been under pressure since the beginning of the year and appear to be stabilising after a long period of decline, but many producers have been left in a loss-making position with milk prices below costs of production.

First Milk has announced it will hold its milk price again at 36.85p/litre in September, for a standard manufacturing litre of 4.2% butterfat and 3.4% protein, including its members’ premium.

See also: Cull cow prices slip back after June highs

Dairy farmers supplying Saputo will continue to receive 37.5p/litre for a manufacturing litre into September.

Arla has also confirmed a further price hold and it will continue to pay a manufacturing litre price of 35.12p/litre to farmers in August, while the organic price will remain at 40.79p/litre.

Arthur Fearnall, Arla Foods amba board director and farmer, said: “It is positive to see retail sales slowly picking up as inflation softens and consumer purchasing power increases.

“Globally, while milk supplies continue to increase, the growth rate is slowing down. The outlook is stable. However, uncertainty still remains as to future purchasing behaviour.”

Arla also recently agreed a new four-year partnership with Asda which is expected to account for more than 3bn litres of milk supply to the retailer.

Under the agreement, Arla will continue to supply Asda’s private-label milk and dairy products such as cream, cheese, and butter.

Paul Gillow, vice-president for fresh food at Asda, said: “In a period of ongoing instability in the agriculture sector we are delighted to continue to partner with Arla for the long term.”