The world’s oldest cheddar cheesemaker, AJ & RJ Barbers is holding its manufacturing litre milk price for July, which pays 29.91p/litre at 4.2% butterfat and 3.4% protein.
The processor’s 150 supplier farms have now not seen a price drop since May, when Barbers reduced the money it pays producers by a penny.
From 1 June until the end of December, farmers who deliver above their basic +8% production threshold will receive the higher of either the Barbers standard price or market indicator Actual Milk Price Equivalent (AMPE) less 2p/litre.
See also: Arla announces UK milk price fall
With AMPE, the key UK market indicator for skim milk powder (SMP) and butter commodity prices relating back to milk price, set to rise this month off the back of soaring butter prices, producers will be incentivised further to increase production in the next six months.
International cheese sales
This will encourage Barbers own producers to reap the benefits of its UK and international cheese sales which are exceeding expectations, said the company’s milk supply manager, Michael Masters.
“In the recent period, Dairy Crest, Muller, Arla, First Milk and County Milk have all reduced their milk prices still further, even though dairy markets in the UK, EU and internationally are improving.
“We considered it important that our existing supply base should have the first opportunity to benefit from our increasing sales demand, as well as the reassurance that we would retain our current price for a third successive month before we embark on any limited additional recruitment,” added Mr Masters.