Milk prices jumped by 2.7p/litre at United Dairy Farmers’ latest auction, with strong demand and reduced availability supporting the market.
At 28.92p/litre, the average price was more than 10% higher than last month and was closing on year-ago values of 29.5p/litre, said chief executive David Dobbin.
“This is welcome news to members who have had a difficult summer and are now facing increased winter feeding costs. The auction was driven by strong demand for the limited milk available, with processors paying to fill contract commitments.”
The auction sold 35m litres of milk for October delivery – 1m litres below last month and 4m litres less than the same time last year. “Local milk supplies are at their lowest in October and November, and this summer’s poor weather has further depressed milk production throughout the British Isles,” said Mr Dobbin.
“While international markets have improved over the past month, the recovery has slowed as September has progressed. The southern hemisphere is now coming into its main milk supply season and forward powder and butter prices will depend largely on supplies from countries like New Zealand.”