Cream prices may have turned the corner, jumping by £80/t in June after months of decline, to settle at £1,020/t. The estimated cream income to liquid processors increased by 0.47p/litre, to 5.95p/litre, said a report by DairyCo. That was 4.08p/litre lower than the same time last year.
Despite weaker mild cheddar values, better butter, skimmed milk powder, cream and whey prices saw The Dairy Group’s Market Price Equivalent (a basket of commodity prices reflecting actual market returns) increase by 0.43p/litre, to 26.31p in June – 3.6p/litre down on the year.
“With commodity markets firming, the focus now will be on cheese to maintain prices at their current level into the winter,” said director Nick Holt-Martyn. Although EU milk production was up 4% this year, strong demand from China and Russia was supporting export values. “Further falls in farmgate prices should be unnecessary until more of the autumn market factors become known.”
However, GB milk production was falling at an alarming rate due to the poor summer weather. Daily deliveries in the two weeks to 23 June were 2.6% lower than the same period last year.
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