By Robert Harris
THIS months milk price review shows Milk Marque was the only company paying producers less than 19ppl in September.
Indeed, its daily collection value of 17.57ppl was significantly lower than other companies, says Wye Colleges Stephen Bates (see table, below).
Although the co-ops new trading bonus, announced after the August selling round, will make no difference to these prices, it will boost milk cheques for October deliveries onwards. “This should help bring Milk Marque back into the frame,” says Mr Bates.
But he points out that even if the bonus adds 0.3ppl, it will not make much difference to the average price achieved for the milk year to date.
A weaker Pound could help MM achieve at least that amount. Much of the milk sold in the August selling round was on index-linked contracts, which rise in value as sterling falls.
The co-op also re-offered some of the 2.3 million litres of milk left unsold, increasing clearance for the round from 83% to 90% and boosting the number of index-linked agreements.
Most mainland manufacturers are also complaining that milk supplies are very tight, thought to be due to MM shipping milk abroad for contract processing. Independent consultant Mike Bessey reckons that spot prices now top 24ppl in England and Wales.
This will help MM achieve better prices for the 2 million litres of milk a day still sold on short-term markets.
However, MM points out that much of this milk is sold through sealed bids, which would not achieve that sort of price. But, as an MM spokesman put it, any increase is welcome.
Despite depressed milk prices, quota leasing values have risen sharply again as too many farmers continue to chase meagre supplies.
|Nestlé England (Dalston)||2||4||8.78||11.50||3.00||22.57||19.91|
|Unigate – EODC||3||2||4.10||5.04||2.00||22.51||21.51|
|AW Foods (Avonmore)||8||8||0.03||0.03||3.00||21.54||20.38|
|AW Foods (Lockerbie)||11||16||7.42||11.25||2.00||20.75||18.72|
|MD Foods (Premier)||17||20||8.20||3.25P||0.00||20.00||20.00|
|AW Foods Waterford (“PSL” contract)||19||22||0.00||0.09||0.00||19.78||20.18|
|The Milk Group||20||6||8.82||10.62||0.00||19.74||19.74|
|Milk Marque – EODC||22||19||7.71||10.34||0.40||18.32||18.07|
|Source: WYE COLLEGE|
University of London
P=payment for protein capped (at 3.3% for MD and Express, 3.35% for Golden Vale)