Latest milk prices for dairy farmers

Arla

Arla was holding its October manufacturing price for conventionally produced milk at 35.21ppl and organic at 40.88ppl, with liquid at 33.83ppl and 39.28ppl respectively.

Currency exchange impacts and an adjustment to its Sustainability Incentive boosted those prices by 0.09ppl.

Arla producer and board member Arthur Fearnall said: "It is positive to see that, for the first time this year, our branded retail sales have picked up.

"Global commodity markets are pressured by whole milk powder, while European markets are more stable, albeit slightly negative. However, there is some degree of uncertainty driven by commodity market developments."

Freshways

Freshways has reduced its November price by 1ppl to 35ppl. Bali Niljar, managing director, said: "While we have been successful in convincing customers to remain loyal, the mounting pressure from falling prices in other sectors has made it difficult for Freshways to justify paying above market indicators."

He added the investment in a new distribution hub for London and the South West, plus a 250 million litre processing plant in the Midlands, demonstrated the company's commitment to producers.

First Milk

First Milk dropped its November price by 0.85ppl to 36ppl on its standard manufacturing contract, which includes a member premium.

Vice chairman Robert Craig said: "We understand that this will be unwelcome news for our members, especially heading into the winter, as costs on-farm remain stubbornly high."

He added dairy demand had been reduced for several months, pressuring prices, which had impacted returns.

Muller

Muller has confirmed its milk price will reduce by 0.5ppl from November 1.

This will take the milk price received by farmer who meet the conditions for the Muller advantage scheme to 36.5ppl, including the 1ppl premium which is paid quarterly in arrears.

Richard Collins, head of agriculture at Muller Milk and Ingredients said: "While we remain committed as ever to paying our supplying farmers a competitive milk price and ensuring security of supply, we have to respond to continued market pressures and supply remaining ahead of forecast."

September prices

Producers who meet the Muller Advantage standard will receive 37ppl, including the 1ppl Muller Advantage premium, paid quarterly in arrears, from September 1, the same as in August. This was 10ppl less than September 2022.

Arla has confirmed its milk price for August 2023 remain unchanged for conventional and organic milk.

This means the UK manufacturing price for conventional and organic milk will be 35.12ppl and 40.79ppl respectively.

Arla Foods amba board director, and Arla farmer, Arthur Fearnall, said: "It is positive to see retail sales slowly picking up as inflation softens and consumer purchasing power increases.

"Globally, while milk supplies continue to increase, the growth rate is slowing down. The outlook is stable. However, uncertainty still remains as to future purchasing behaviour."

First Milk

First Milk has announced to its members that its milk price will be held from September 1, 2023. Its milk price will remain at 36.85ppl for a manufacturing standard litre, including the member premium.

July

First Milk has announced its milk price will reduce by 1.04ppl from July 1, taking its price to 36.85ppl for a manufacturing standard litre, including the member premium.

Bruce Mackie, director of Rora Dairy, said farmers face tightened pressures including inflation and the dry season which could slow down milk deliveries.

"Farmers are facing a host of challenges at the moment including rising inflation on electricity and wages which is making their lives harder.

"The season at the moment is very dry south of Aberdeenshire which is leading to increased sileage costs.

"I am very concerned about the quality of grass available for livestock because of this.

"Inflation in wages is another cost for farmers to think about because they want a good supply of labour but will labourers be more inclined to milk for longer hours three times a day?

"Effectively, I see milk deliveries being tightened which could mean less milk is available on our shelves."

Robert Craig, farmer director and vice-chairman, said: "We understand the impact ongoing price reductions have at farm level, and that this news will be unwelcome.

"We continue to work hard to ensure that we maximise our members' milk price and minimise volatility as much as possible."

Saputo UK has also confirmed its headline price for July will be 37ppl.

Organic milk cooperative Omsco has announced its member milk price will continue to be held at 49ppl, on a liquid standard litre basic, in July.

Muller milk price

Meanwhile, dairy farmers supplying Muller, who meet the conditions for Muller Advantage, will receive a milk price of 38ppl from July 1, including the 1ppl premium paid quarterly in arrears.

The reduction has been forced, according to Richard Collins, head of agriculture at Muller Milk and Ingredients, by 'market pressures.'

Mr Collins said: "Everyday people enjoy the products we make, right across the country, and we remain committed as always to paying a competitive milk price and ensuring security of supply."

Arla has announced another drop in milk price for its farmers. From June 1 Arla will pay 35.21ppl for conventional milk, a fall of 1.78ppl.

Arla milk price

Arla organic farmers will also receive a drop in price to 40.88ppl. This works out at a decrease of 0.89ppl.

Arla farmer and board director, Arthur Fearnall said the global milk supply continues to grow but at a ‘slow pace'.

"The retail sector is under pressure as consumers continue to buy less and cheaper dairy products due to the cost of living crisis.

"The outlook is stable as the market is finding its balance. Consumer purchasing power will increase as inflation softens and wage increases kick-in," he said.

Paul Savage, agriculture director for Arla UK said he recognised their farm owners still faced ‘historically high on farm costs' but that it is ‘positive to see the market move towards stabilisation.'

Freshways has also confirmed a 2ppl price drop to 36ppl from July 1.

Managing director Bali Nijjar said its customers had been offered extremely competitive prices based on low spot prices.

"Announcements made in relation to June and July prices in the last 24 hours have come as a surprise but has unfortunately left us having to make the awkward decision to lower prices further or face the consequence of being left behind and uncompetitive in the current environment."

Competitive

Barber's cheesemakers, which held its price in June, said it had hoped when the decision was made with some early signs of market stability ‘this would result in a broader resilience in competitor ex-farm milk prices'.

However, with many additional competitor cuts since then, the cheesemakers confirmed it would reduce its July price by 2ppl, taking it to 37.04ppl at milkprices.com manufacturing league table criteria.

It added it did need to remain price competitive in the marketplace but would keep the pricing under ‘constant review'.