Average farmgate milk prices fell by 0.7p/litre in June, to 26.26p/litre including retrospective bonuses.
According to provisional data from DEFRA, that was 3.2p/litre below the peak in November last year and 0.37p/litre less than the average in June 2011.
Global commodity prices improved at Fonterra’s latest auction, with the weighted average up by 3.5% to US$2,797/t (£1,791). That was despite the auction selling 46,682t of product – the largest volume since 20 September 2011. It was a 9,619t jump from the previous fortnight’s sale and 9,960t more than the same time last year. Milk protein concentrate saw the greatest increase in price, up by 11%, with skimmed milk powder rising by 3% and cheddar by 5.5%.
Meanwhile, the Rural Payments Agency has confirmed that UK wholesale milk deliveries in 2011-12 totalled 13.5bn litres. That was 200m litres more than the previous year and the highest since 2005-06. However, it was still 1.5bn litres under the national quota. Direct sales amounted to 125m litres – 18m litres below quota.
Milk quota values dropped to 0.16p/litre for 4% butterfat.