UK Milk Industry Faces Pricing Stagnation amid Supply Surge
Source: The DairyNews
The surge in milk supply has quelled the initial rise in farmgate milk prices, as processors respond to increased production at the beginning of the year.
GB milk supply has rebounded, aligning more closely with last year's levels, following a fall during the autumn. Forecasts predict further growth in production in the coming months, approaching the spring flush.
While UK wholesale prices for cream and butter experienced an uptick in January, skimmed milk powder and mild cheddar faced a decline.
With market momentum slowing down alongside increased supply, several processors have declared that milk prices will remain unchanged for February and March.
Arla will maintain its price at 39.18p/litre for a manufacturing litre, while organic producers will receive 46.5p/litre in February. Arthur Fearnall, Arla Foods amba board director, cited stable global commodity markets but acknowledged the potential growth in EU milk supplies.
Muller producers will continue to receive 36.5p/litre for a standard liquid litre in March, and Barber's Cheesemakers will keep its March price steady at 38.2p/litre for a standard manufacturing litre.
Organic Herd plans a 0.5p/litre increase in its March milk price to 49.5p/litre for organic producers after maintaining it at 49p/litre for the past 17 months. Martyn Anthony, Organic Herd's CEO, expressed cautious optimism for the organic dairy sector, hinting at possible further increases in milk prices during the spring and early summer.
As of January 31, other processors were yet to announce their prices, leaving uncertainty in the market.
In Northern Ireland, dairy farmers are witnessing further drops in milk prices compared to other EU countries and the rest of the UK. The Ulster Farmers' Union (UFU) highlighted this trend after a meeting in Brussels, emphasizing the challenges faced by farmers delivering milk below the cost of production, calling the situation unsustainable for the industry.
While UK wholesale prices for cream and butter experienced an uptick in January, skimmed milk powder and mild cheddar faced a decline.
With market momentum slowing down alongside increased supply, several processors have declared that milk prices will remain unchanged for February and March.
Arla will maintain its price at 39.18p/litre for a manufacturing litre, while organic producers will receive 46.5p/litre in February. Arthur Fearnall, Arla Foods amba board director, cited stable global commodity markets but acknowledged the potential growth in EU milk supplies.
Muller producers will continue to receive 36.5p/litre for a standard liquid litre in March, and Barber's Cheesemakers will keep its March price steady at 38.2p/litre for a standard manufacturing litre.
Organic Herd plans a 0.5p/litre increase in its March milk price to 49.5p/litre for organic producers after maintaining it at 49p/litre for the past 17 months. Martyn Anthony, Organic Herd's CEO, expressed cautious optimism for the organic dairy sector, hinting at possible further increases in milk prices during the spring and early summer.
As of January 31, other processors were yet to announce their prices, leaving uncertainty in the market.
In Northern Ireland, dairy farmers are witnessing further drops in milk prices compared to other EU countries and the rest of the UK. The Ulster Farmers' Union (UFU) highlighted this trend after a meeting in Brussels, emphasizing the challenges faced by farmers delivering milk below the cost of production, calling the situation unsustainable for the industry.
