Milk Price Changes

Published 3 May 19

Monthly commentary on the latest milk price changes publically announced by UK milk buyers

Most processors held their price in May, with a few announcing price decreases in the range of 0.34-0.75ppl. Of these, the 0.34ppl price decrease was to Tesco contracts that are aligned to cost of production. At late notice, Grahams announced a cut of 0.75ppl to its May price.

Surprisingly, given the volumes of milk currently being produced, there are only a few announced prices changes for June. Dairy Crest have announced it will be holding its milk price, while Barber’s have announced a 0.75ppl decrease. Prices on Müller’s Booths contract will increase by 0.55ppl for June.

Wholesale markets have been steady to slightly down over the last few months, which has been reflected in the size and frequency of farmgate price movements. In April, trade was mostly quiet, with the multitude of factors at play ultimately dampening price movements. Overall, however, prices were still slightly down. AHDB’s Milk Market Value (MMV) indicator suggests that these declines could feed through to farmgate prices over the next couple of months, if prices follow historical relationships.

For a list of the most recent announced milk price changes, click here

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