Extra supply causes NI milk price to slip

Milk prices eased slightly at United Dairy Farmers‘ latest auction, but still averaged over 29p/litre for the fifth successive month.

Values fell by 0.53p/litre to 29.02p/litre, still 2.25p/litre above the same time last year. “This was another good auction for members, taking into account the higher volumes of milk for sale and weakening returns in international markets,” said chief executive David Dobbin.

“There were six million litres more milk for sale, with milk supplies increasing as we move out of the trough period. United’s milk supplies are now running 4% ahead of last year. The impact of falling bulk butter and powder prices and adverse currency movements were thankfully offset by good returns from consumer markets in the UK, especially cheese.”

The group’s milk supplies reached their seasonal trough in the third week of October, two weeks ahead of last year. Production was now climbing again, and as a result the auction sold 43m litres for December delivery. “With the seasonal rise in European milk supplies in the New Year an upturn in global demand will be needed to avoid a build up of stocks and increased downward pressure on markets.”

Market report