Farmgate milk prices hold steady for June and July

Dairy markets appear to be stabilising, with several major milk processors holding farmgate milk prices during the summer months.

The outlook for the dairy sector appears mixed, with wholesale values generally improving but cheddar and butter prices coming under pressure.

Longer term, dairy analysts are anticipating demand to grow for high protein products, such as cheese and whey.

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The actual milk price equivalent, which is used by industry as milk market indicators for butter and skimmed milk powder, lifted marginally in May to 35.54p/litre.

Meanwhile, the milk for cheese value equivalent price, which indicates the value of mild Cheddar and whey powder, has eased back slightly.

Daily milk volumes have started to fall since passing the spring flush; however, volumes remain relatively high for the time of year and close to last year’s record highs.

Muller has confirmed it will hold at 34.5p/litre for a standard liquid litre in July, including the members’ advantage premium.

Barbers Cheesemakers will also hold its farmgate milk price into July, paying its producers 33.6p/litre for a manufacturing litre.

Arla will continue to pay its producers 35.83p/litre for a standard manufacturing litre in June, after having lifted it price in May.

The processor says the outlook is stable with prices on global commodities markets increasing for protein and declining for fat.

Arla’s organic producers will receive a headline price of 56.31p/litre in June.