Barbers latest to push up milk price amid dairy market calm

Milk processor Barbers has announced its second farmgate price increase in three months following the recovery of cheese prices.

The firm will add 1p/litre to its December price to bring the value of a standard litre up to 29p.

“The revised December 2020 milk price concludes what has been the most exceptional of years for the business, and for us all,” the firm said.

See also: BVD vaccination can lift milk yields, trial shows

“Despite the ongoing Covid-19 pandemic and resultant volatility, our blend of domestic and global customers, and the resilient approach adopted by the teams at our two processing sites, have delivered much-needed milk price stability throughout the January to August 2020 period.”

The announcement follows a slew of price rise announcements in October, with the industry’s price leader, Arla, announcing last week it is taking its suppliers above 30p/litre from 1 November.

Muller Direct, Cotteswold Dairy and Yew Tree Dairy suppliers will also see an extra 1p/litre from next week.

Many other dairies have chosen to stand on, with StoneX dairy analyst Dr Peter Meehan saying that good milk production across Europe has provided some price pressure.

Production data for September is showing year-on-year gains for Ireland (+1.4%), the UK (+0.8%) and the Netherlands (+0.3%) while, further afield, milk supplies in New Zealand (+1.7%) and the US (+2.4%) were also well ahead of last year.

The AHDB report that uncertainty about the political situation come January is keeping buyers in the UK interested, but spare storage is in short supply for those thinking to stockpile.

However, most wholesale markets were relatively calm in October, with no large shifts in the monthly averages for cream, butter or skimmed milk powder.


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