UDF auction price falls on higher milk supplies
Milk prices dropped by 2.18p/litre at United Dairy Farmers’ latest auction, after five months of rising markets. However, at 30.28p/litre, the average price was 1.2p higher than last year, and the highest November value on record.
“Milk supplies are now starting to climb and we sold almost 20% more milk this month – 39m litres compared to 33m last month,” said chief executive David Dobbin. “Although the price has reduced, it remains above the returns available from international dairy markets and general prices being paid in Great Britain and the Republic of Ireland.”
Reduced production in the USA and many EU countries meant global dairy markets were well balanced, with traders uncertain of future market direction, he added. “With New Zealand now moving beyond its peak seasonal output, we are hopeful markets will remain relatively firm over the next few months.”
The UK’s wet summer meant milk from forage in August was 20% down on last year, according to the Dairy Group’s latest MCi report. High concentrate costs and lower milk yields meant the margin over all feeds dropped by £12, year-on-year, to £104 a cow.
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