15 January 1999

MM January prices

MILK Marque will announce prices for its January selling round on contract milk supplies from April to November early next week, slightly later than in recent years due to the launch of the euro.

Industry talk is that Milk Marque will go for a 1p/litre rise, but will settle for half that amount, making a standard litre worth 18.7p/litre. But the firm would not be drawn on its pricing plans.

"It is sensible to see how the euro beds in; the milk target price now changes every day," says a spokesman.

Before the launch, this target price was protected from daily exchange rate fluctuations by the old green rate system. At the end of December, it was worth 22.26p/litre. By Jan 4 it had risen to 22.72p, before settling back to 22.47p by the start of this week.

MM is expected to offer milk on the same basis as last August – one selling round at fixed prices (no 90% rule), with the rest sold for contract processing or spot. &#42