20 March 1998

April milk set at 16.7p

MILK MARQUE has set a price of 18.2p for a standard litre of milk from April onwards. After seasonality deductions, April milk will be worth 16.7p/litre, May milk 16p.

Bonuses for top quality milk will add back 0.6p/litre, MM points out.

Dairy farmers in Scotland face an even lower May/June price of under 15p/litre. Scottish Milk chairman John Duncan explained that the SM price was linked to that of Milk Marque, less haulage and seasonality payments.

The seasonality deduction has been set at 1p/litre for April and 3.5p/litre for May and June, balanced by additions of 2p/litre for the following four months. Managing director Jack Pirie said there were no plans to change this years seasonality scale.

"But I would not like to second guess the board. They may find the price prospect for May and June to be unacceptable." Ayrshire dairy farmer Willie Campbell said summer milk at 15p/litre was going to leave no margin at all.

SM will announce prices for the next six months on Monday. &#42