UK Dairy Processors Announce November Price Hikes Amid Strong Demand
Source: DairyNews.today
UK dairy processors are set to raise farmgate milk prices this month, bolstered by robust wholesale demand for dairy products such as bulk cream, butter, and mild cheddar, which continue to show strong year-on-year growth despite recent market fluctuations.
Arla Foods confirmed a price increase for its British farmer suppliers in November 2024, with conventional milk prices rising by 2.66 pence per litre (ppl) and organic milk by 1.78ppl. This adjustment brings Arla’s UK manufacturing price to 47.65ppl for conventional milk and 57.64ppl for organic milk. “Commodity markets are continuing to strengthen due to steady demand, with retail sales holding firm,” said Arthur Fearnall, board director at Arla Foods amba. “Global milk supplies remain stable, and the overall outlook is positive.”
Arla’s UK agricultural director, Paul Dover, noted the company recently concluded its autumn roadshows, engaging over 500 UK farmers. “We appreciated the support of our CEO Peder Tuborgh during part of the tour, and we thank our members for their cooperative spirit and engaging discussions,” Dover said.
First Milk also announced a price increase, raising its milk price by 1.25ppl to 43.85ppl for a standard litre, including a member premium. Vice-chairman Mike Smith acknowledged positive trends in dairy commodity prices but noted challenges from on-farm conditions affected by September’s heavy rainfall. “We are pleased to provide another price increase as we see positive momentum in the dairy market,” Smith said.
Müller joined other processors in announcing a 1ppl increase, bringing its Advantage scheme suppliers’ milk price to 42.25ppl. The Advantage program emphasizes supply chain collaboration, herd health, and environmental responsibility. “Following October’s 1ppl increase, we are pleased to add another 1ppl in November,” said Richard Collins, head of agriculture at Müller Milk & Ingredients. “We see stability in the market but remain attentive to the pressures faced by our farmers.”
The consecutive price hikes by leading UK processors reflect sustained demand and cautious optimism in dairy markets, with processors committed to monitoring supply and demand dynamics as the season progresses.
Arla’s UK agricultural director, Paul Dover, noted the company recently concluded its autumn roadshows, engaging over 500 UK farmers. “We appreciated the support of our CEO Peder Tuborgh during part of the tour, and we thank our members for their cooperative spirit and engaging discussions,” Dover said.
First Milk also announced a price increase, raising its milk price by 1.25ppl to 43.85ppl for a standard litre, including a member premium. Vice-chairman Mike Smith acknowledged positive trends in dairy commodity prices but noted challenges from on-farm conditions affected by September’s heavy rainfall. “We are pleased to provide another price increase as we see positive momentum in the dairy market,” Smith said.
Müller joined other processors in announcing a 1ppl increase, bringing its Advantage scheme suppliers’ milk price to 42.25ppl. The Advantage program emphasizes supply chain collaboration, herd health, and environmental responsibility. “Following October’s 1ppl increase, we are pleased to add another 1ppl in November,” said Richard Collins, head of agriculture at Müller Milk & Ingredients. “We see stability in the market but remain attentive to the pressures faced by our farmers.”
The consecutive price hikes by leading UK processors reflect sustained demand and cautious optimism in dairy markets, with processors committed to monitoring supply and demand dynamics as the season progresses.
