Barber’s latest in long line of processors to drop milk price

The world’s oldest cheddar cheesemaker, Barber’s has dropped its milk price by 1.25p/litre from 1 March 2018.

The cut takes the price paid to the company’s 150 producers below 30p/litre for the first time since September 2017 to 29.91p/litre for manufacturing litres with constituent contents of 4.2% butterfat, 3.4% protein.

Processors across the board have announced decreases in UK farmgate milk prices (see ‘National milk prices on downward trajectory’, below) as dairy commodities markets continue to slump.

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January saw universal falls for average UK dairy commodity prices, with bulk cream dropping 14% to £1,550/t, butter sliding 9% to £3,660/t compared with December 2017 according to AHDB Dairy.

Skim milk powder hit its lowest average price since the levy board began recording prices in July 2000, down 6% on the month to £1,160/t.

Cheddar markets down

Crucially for Barber’s, average mild cheddar wholesale prices fell 5% on the month to £2,850/t, 7% behind the same month in 2017.

A spokesman for Barber’s said the drop was partly a result of competitive pressures which had intensified as almost all UK processors have applied at least one, and in some cases two price reductions during this period.

They added: “We hope that the critical balance of milk supply v demand stabilises across the coming weeks, as this will be the best remedy to reverse the current downward pressure across all dairy markets.”