Organic lifts above 57p/litre while conventional milk holds
© Tim Scrivener Dairy co-operative Organic Herd has confirmed it will increase its farmgate milk price to 57.68p/litre from April on a standard litre basis.
This represents a 1.68p/litre increase and reflects a sustained period of growth within the organic sector.
Organic Herd claims to be the only major milk processor to have either maintained or increased its milk price on a continuous basis for more than three years.
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The farmer-owned co-operative has also stressed that the most recent increase is not just a short-term market-related move, but instead is intended to help its producers deal with cost increases on farm.
Martyn Anthony, Organic Herd’s chief executive, said: “As a co-operative, we are committed to providing a genuinely stable outlook coupled with robust and timely returns, creating an exciting long-term future for our members.
“Our strategy remains one of creating long-term stability and growth by generating returns that reflect the true cost and value of organic dairy.”
He added: “I’m pleased to say that our members are responding to this by increasing their production while we are also selectively recruiting new farmers into the ‘herd’, many of whom are young or new entrants to organic dairying.”
Organic Herd’s director of membership, Sara Ogborne, said farmers could not be expected to keep absorbing increasing costs and it was the processors’ responsibility to ensure these costs were accounted for, so that producers could fulfil the growth in demand.
Meanwhile, Arla has confirmed that its organic producers will continue to be paid 58.26p/litre in March.
Conventional milk prices
Major processor Muller has confirmed to Farmers Weekly that it will be holding its milk price for April at 42.25p/litre for a standard liquid litre, including its quarterly advantage premium.
Arla has also held its prices and will continue to pay 48.27p/litre for a standard manufacturing litre in March, the equivalent to a standard liquid price of 46.28p/litre.
The co-operative says the outlook remains stable, with global milk supplies increasing slightly and retail sales continuing to grow, but at a slower pace.