Barber’s drop farmgate milk price

The world’s oldest cheddar manufacturer, AJ & RJ Barber’s, has dropped its milk price for May by 1.25p/litre.

Barber’s sighted price cuts from competitors, a softening of cheese markets and increased milk production as reasons behind the price drop for its 130 supplier farms.

The move follows Arla’s decision to lower its milk price for April by 0.42p/litre.

Producers on the new Barber’s Assured Contract will receive 29.05p/litre with constituents of 4.10% butterfat 3.28% protein.

See also: Arla milk price cut could set trend as production rises

Farmers still on the processor’s existing contract will be paid 27.55p/litre for standard litres following the price drop. 

The cheese manufacturer committed to a 24.8% increase to farmgate prices in November last year, taking its price from 24.13p/litre to 30.13p/litre over a three-month period.

Market indicator, milk for cheese value equivalent (MCVE), dropped by 1% (0.2p/litre) between February and March this year.

UK milk production volumes have been closing the gap on figures from last year, standing at 33.81m/litres for the week ending 18 March, but remained 0.9% on the same week 12 months before.

Barber’s milk supply manager, Michael Master, said, “It is disappointing to report that despite our leading milk price decision taken in November moving our price beyond 30p/l from February, that milk pricing by our major competitors has stalled well below this level, and in some cases reductions from April have already been announced.”