Milk prices mostly on the up

Milk processors announced 34 price changes affecting the DairyCo league table in January – all but three of which were upwards.

Most increases were for manufacturing contracts, although Sainsbury’s Sustainable Dairy Group and Dairy Crest’s non-aligned liquid contracts also increased. “The exception is the decreases that applied to members of Arla Milk Link supplying milk to the London liquid, manufacturing and northern manufacturing pools,” said the DairyCo report. “This follows currency movements linked to the Arla Foods amba price.”

Processors had also announced several contract changes, including the end of United Dairy Farmers’ monthly auctions and the new non-aligned liquid contract for Dairy Crest. Available from 1 April, the contract would use a formula to calculate milk prices, reflecting movements in both market returns and input costs.

From 1 April, First Milk members would increase capital payments, to be partially offset by a 0.4p/litre increase in cheese prices and a 0.5p/litre rise in liquid contracts. “Furthermore the co-operative will be simplifying the milk pools and pricing structure,” said the report. This would involve incorporating existing contracts into fewer manufacturing and liquid pools.

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