Farmers Guradian
Topics
How to spot BSE and what farmers can do to prevent it

How to spot BSE and what farmers can do to prevent it

DataHub

DataHub

Dairy Farmer Magazine

Dairy Farmer Magazine

Auction Finder

Auction Finder

CropTec

CropTec

LAMMA 2019

LAMMA 2019

You are viewing your 1 free article

Register now to receive 2 free articles every 7 days or subscribe for unlimited access.

Subscribe | Register

'It is disappointing to have to have to drop our milk price' - First Milk announces May price drop

Prices have dropped by between 0.10ppl and 0.35ppl


Alex   Black

TwitterFacebook
Alex   Black
TwitterFacebook
Share This

'It is disappointing to have to have to drop our milk price' - First Milk announces May price drop #teamdairy

First Milk has announced its milk price to members will fall by between 0.10ppl and 0.35ppl in May.


Read More

‘There has been some upward movement in short term markets’ - First Milk announces June milk prices ‘There has been some upward movement in short term markets’ - First Milk announces June milk prices
'A price reduction has regrettably become necessary' - Dairy Crest announces milk price cuts 'A price reduction has regrettably become necessary' - Dairy Crest announces milk price cuts
Arla announces milk price drop - but maintains UK price Arla announces milk price drop - but maintains UK price
Dairy cattle prices recover after 'awful' March 2016 Dairy cattle prices recover after 'awful' March 2016
NZ hurricanes boost dairy prices NZ hurricanes boost dairy prices

Clive Sharpe, First Milk chairman said: “After total increases of 10ppl since last summer, it is disappointing to have to reduce our milk price.

 

"However, consistent with our business operating model, we will continue to pay a milk price that relates to our returns.”

 

It follows Dairy Crest's announcement it would drop its price by 1ppl in June, 1ppl in July and then hold until September.

 

Barber's has also announced it will hold its price for June.

Expert Opinion - Milk price drops not surprising

Principal consultant at the Dairy Group, Nick Holt-Martyn, said he was not surprised to see recent milk price drops, as globally, there was ‘no market’ for milk proteins.


He said: “Skim milk powder is at intervention level. The butter market is virtually double that, but you cannot produce one without the other.


“Dairy Crest has now satisfied its core demand and has critical volume coming in.”


He said he would be watching to see liquid processors’ decisions on milk prices, as liquid markets had been supported by cream incomes.


He said: “Liquid milk tends to follow the market, so it will probably have a knock-on effect on liquid people. It will be interesting to see if they follow suit.”


He said the announcement was further forward than it needed to be, which had given producers a ‘reasonable idea’ of what income would be over summer.


He added the mood had changed from last autumn when the industry was discussing how far the price could rise.


He said: “Now, we are in the position of hoping prices do not fall any further.”

TwitterFacebook
Post a Comment
To see comments and join in the conversation please log in.

Most Recent

Facebook
Twitter
RSS
Facebook
Twitter
RSS