Raw milk prices set to follow product values?

By Robert Harris

A NEW information service to help sellers achieve milk prices more closely aligned to dairy markets will be available from this autumn, says the Milk Development Council.

Although the original launch date in April was delayed due to foot-and-mouth, the Milk Market Information Service will be fully operational in time for the European Dairy Farming Event in September, says Council chairman Brian Peacock.

Industry soundings and a recent MDC report on milk pricing suggested that price cuts in dairy markets affect farm-gate values much faster than price rises.

Better information on factors affecting supply and demand of milk and milk products should help raw milk prices track product values more closely.

Information will be available through MDC communications, via the internet and through the Press. This will include UK, European and global market information, supply costs, milk production figures, milk usage statistics and ex-farm prices, with full analysis explaining the effect these components have on the market.

The service will be free to all levy payers. Although no firm figure is available, the MDC is believed to have spent about 100,000 on the project.

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