Dairy Crest’s formula milk price has tumbled for the first time in three months, after pressure over the spring flush.
The market-tracker rate has dropped 0.661p/litre from June to July, following a drop in cream values across the UK and Europe.
Dairy Crest suppliers with milk committed the formula will be paid 27.957p/litre, before any early sign-up bonuses.
This is still 4.7p/litre higher than the processor’s standard liquid price, which has been frozen for July.
Bulk cream values slipped £50/t to £920/t in May, with milk supplies running high across the EU. AHDB Dairy also applied a backdated drop to their cream index for April.
The retail price for four pints of milk also stayed flat at 103p/litre, the first stability this year.
On the costs side, red diesel crept up again to 54.06p/litre, while no new concentrate or fertiliser information was available.
Michael Masters, secretary of supplier group Dairy Crest Direct, said a further fall was likely for August, once June data has been received.
Latest milk production figures from AHDB Dairy show UK milk deliveries averaged 44m litres/day in the two weeks to 30 May.
This was 3% higher than the same week in 2014 and 7% higher than the three-year average.