Milk Marque fails in first round

By FWi staff

HOPES of an increase in milk prices were dashed this morning (Wednesday) when it emerged that Milk Marque had found bidders for only a quarter of its milk.

The farmer-owned cooperative was forced to announce a second selling round for its April-October milk supplies this morning after limited bidding by dairy companies.

If successful, the first bidding round would have raised farmgate prices by about 0.5ppl.

But it was always in doubt that processors would be willing to pay more for what many dairy companies regard as a primary commodity.

Demand amounted to just 25% of the milk on offer, even though most dairy companies apparently took part.

Milk Marque wanted an extra 0.7ppl for milk sold under its most popular contract, forecasting a bullish market for butter, milk powder and mild cheddar.

But the farmer-owned cooperatives outlook was judged as overly optimistic by dairy companies who decided that the extra money was just too much to pay.

Almost 13 million litres of milk a day were on offer, with up to 2m litres a day offered on daily and monthly short-term markets.