12 September 1997
Milk Marque to make further cuts to milk cheques
By Philip Clarke
MILK Marque has confirmed it is knocking another 2p/litre off milk supplies from October 1, taking its standard price to just 20p/litre.
The drop takes the total fall this year to 4.5p/litre and, with no changes to marketing charges, will put particular strain on smaller milk producers.
A year ago, a 40-cow man delivering 800 litres a day would have received about 24.2p/litre, after collection charges and before seasonality. But from October 1, 1997, he will be getting just 18.3p/litre – almost 6p less – after deducting the £13.50 daily fee (assuming no quality premiums).
Milk Marque puts the blame for the price fall squarely on the strength of sterling over the past 12 months, which has forced support prices down by 20%.
But there is a growing hope that milk prices could now have reached the bottom of the trough. Sterling is enjoying a period of relative weakness and there is no immediate prospect of another revaluation.
For the full story see page 21 of this weeks issue of Farmers Weekly, September 12 – September 18.