By FWi staff
ORGANIC milk producers who supply Milk Marque will receive a higher price for their milk from this month onwards.
The price increase of 1.6ppl will take the price for a standard litre (4.15% butterfat, 3.35% protein with top bactoscan and cell count) to 29.95p/litre.
This is good news for organic producers. But those producing conventional milk will see a price fall of almost 1p/litre from May.
The price increase announced today is the result of demand simply outstripping supply, said a spokeswoman from Milk Marque.
This means that organic suppliers will receive a premium of 11.1p over conventionally produced milk, slightly more than the Sainsbury deal announced two weeks ago.
The price hike is part of the new Milk Marque organics package, which also offers technical support for members. Those in the process of converting will be eligible for an interest-free £1200 loan to be repaid in the first two years after conversion.
Milk Marque is expecting significant growth in the organic sector, with the market growing several times over in the next few years.
Speaking on the new price Milk Marque managing director, Paul Beswick said that the new organics package underlines the commitment of Milk Marque in this small but growing sector.
“By working in partnership we are creating long-term sustainable growth in this important market,” he added.