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Barber’s drops January milk price

The cheesemaker acknowledged it was ‘disappointing news, especially versus the current costs on farm’


Alex   Black

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Alex   Black
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Barber’s drops January milk price

Barber’s has announced a 1ppl price drop from January 1, as it reacts to weakening UK and EU dairy markets.

 

It takes its Barber’s Assured standard litre price to 28.8ppl.

 

The cheesemaker said the drop was ‘unfortunately’ required to retain competitiveness across the supply chain.

 

Production

 

It pointed to AMPE falling by 6.1ppl during its four months of ‘milk price stability’ with GB milk supplies also reaching a 3 year high in October.

“These factors intensified further as price cuts have applied by some from December.”

 

It accepted this would be disappointing news for dairy farmers, especially in the context of current on-farm costs.

 

“We hope that the current pressure on dairy markets improves as the delicate balance between supply and demand’ stabilises in the coming months.

 

“Whilst its very much too early to report an immediate market recovery, it is encouraging to report that intervention stocks of skimmed milk powder are now 50 per cent of their peak, and at current rates of sale, may empty in 2019.

 

SMP

 

“This welcome change delivering a ‘2018 SMP £/t high’ for November.”

 

It added while farmgate prices soften against tight forage stocks and high feed costs it was expected milk production may come back into balance.

 

“Ultimately, this should see some improvement in markets.”

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