The price will drop by 0.4ppl
Meadow Foods has announced that its milk price will drop by 0.4ppl from May 1, taking its standard A litre milk price to 27.15ppl.
It said dairy markets had been weakening on the back of increased spring milk volumes, particularly across Europe where some member states have already applied to put skimmed milk powder (SMP) into intervention.
350,000mt of SMP were in intervention, which Meadow Foods said ‘overhangs the market’.
Simon Chantler, executive chairman at Meadow Foods, said: “We had hoped to be able to maintain our milk price over the spring flush period, however, due to weakened market conditions we have announced this reduction.
“On a more positive note, Dairy Futures suggest that milk prices should improve again over the summer as milk volumes tighten,” he said.
“We will keep producers fully appraised of developments in the market as they occur and look to return any improvements as soon as we are able.”
He added although butterfat prices remain historically high for this time of year, they have ‘come off significantly’ since the peaks of late last year, due to extra cream from the increased milk supply.