Cream value not showing in farmgate prices

Published 30 August 16

For liquid processors, fat as a by-product has increased in value by around 4ppl since April. This improvement in cream returns is not currently flowing through into farmgate prices for those supplying the liquid milk market.

The chart below compares the average farmgate prices from non-aligned liquid buyers with the value of cream. In August 2016, cream returns made up more than 40% of the average farmgate price, the highest level for more than five years. 

cream prices not showing in farmgate price