Changes at the top of milk price league

Dairy Crest has returned to the top of DairyCo‘s milk price league table, following a 1p/litre increase in its Waitrose price in January. A 0.5p/litre rise by Parkham Farms puts it back in line with other top-paying cheese producers, and above non-aligned liquid contracts.

However, from February the league table is likely to return to a more familiar pattern, with a raft of price increases for both cheese and liquid contracts. From April, a 2p/litre increase for Arla and Wiseman suppliers will bring their non-aligned contracts back to the top part of the league table, assuming other liquid buyers do not respond with further price rises.

“It has been suggested that liquid milk supplies in the middle market are getting tight, perhaps as sales are diverting to more profitable commodity markets,” says DairyCo. “With prices for cream, butter and cheese on UK and European wholesale markets all rising sharply in February, we may see further price rises on cheese contracts, which will add further pressure to the liquid processors to keep pace.”