Record AMPE at 38.8p/litre in April
DairyCo’s latest milk price league table showed four price increases for March, with a number of price rises applying from April onwards.
Processors cited higher input costs and improved business performance for some of the price rises, with stronger global commodity prices and tight milk supplies also proving supportive, said DairyCo’s report. Although weather conditions were now improving, UK milk production was still lagging 8.3% behind last year, at 36.9m litres a day in the two weeks to 27 April.
“Competition for scarce milk supplies meant upward pressure on wholesale prices in April,” it said. Cream and butter values rose by 19% on the month, to £1,600/t and £3,500/t, respectively. With skimmed milk powder also 17% firmer, the Actual Milk Price Equivalent, based on a basket of commodity prices, reached a record 38.8p/litre – 6.4p up on the month and 16.5p higher than April last year.
“With markets surging, there is the possibility that buyers may start to search out more affordable alternatives, which could see values easing,” However, global milk supplies remained tight and the New Zealand flush would be important in the autumn.
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