NFU expects better milk prices

The NFU is optimistic that the corner has been turned for milk producers supplying the liquid market.

Following last week’s announcement by Robert Wiseman Dairies that it was raising its price by 0.3p/litre, NFU dairy board chairman Gwyn Jones said the time had come for other dairies to follow suit.

“After suffering nothing but price cuts and bad news since the start of the year, this allows farmers to be slightly optimistic about where prices will go,” he said.

“The news that Wiseman’s will be holding its price for the next two months will also give farmers a short period of stability.

“As an industry we must look at ways of creating longer periods of stable prices, but this is a promising start.”

The small rise in the Wiseman price reflected an improvement in the cream market in recent months.

According to DairyCo data, the June cream price was valued at £930/t,compared with £870/t in May and just £750/t at the market low-point in February.

But Wiseman’s procurement director Pete Nicholson was adamant last week that other commodity markets remained “fragile” and it was too early to call an end to the recent period of price volatility.

The EU Commission also issued a gloomy short-term outlook for global commodity prices, suggesting further falls would occur in 2009/10 before markets started to turn later next year.