Further cuts to farmgate milk prices announced

Müller has confirmed that dairy farmers meeting the requirements for Müller Advantage are receiving a milk price of 35.5ppl in February, representing a reduction of 3ppl. From 1st March, Müller’s milk price will fall by a further 1ppl.

Richard Collins, agriculture director at Müller Milk & Ingredients, explained that the decision reflects ongoing pressure across dairy markets.

“Milk collections remain well above the levels we saw at this point last year, and market prices have continued to reduce. We are continuing to track supply and demand developments carefully,” he added.

The Arla conventional milk price fell by 1.75ppl from 1st February. The current Arla Headline price for conventional milk is 33.98ppl. The Arla milk price for organic milk remains unchanged at 57.98ppl.    

A spokesperson for Arla said: “Global milk supplies continue to be at a high level. Retail prices are expected to drop in EU stores during the next months, due to supply continuing to outgrow demand in Europe.  

“Commodities are, on the other hand, stabilising at a global level, however, still at a low level. Due to plenty of supply all over Europe, farm gate prices are still under pressure in the short term. Supply and demand are still out of balance.  

“Although it seems as if we are getting closer to the bottom of the cycle. For organic, prices are stable for now. The outlook is uncertain.” 

M&S made no change to their price in February. Sainsbury’s made the smallest positive change of the retailers at 0.04ppl, while Tesco made a positive announcement of 0.41ppl after having held steady in the previous month.  

Price cuts to cheese contracts

On non-aligned liquid contracts, AHDB has confirmed another month of price declines apart from Payne’s Dairies. Crediton Dairy and Muller Direct made a reduction of 3.00ppl each.

Freshways made a price cut of 2.00ppl, Pembrokeshire Creamery reduced their price by 3.17ppl, while Payne’s Dairies held on to their price after three months of continuous decline. Grahams and BV Dairy reduced their price by 2.50ppl and 2.31ppl, respectively. 

There were more price cuts to cheese contracts, mostly in the range of 2.00 to 2.50ppl. Belton Cheese and Saputo reduced their price by 2.50ppl each. Wensleydale Creamery and Wyke Farms reduced their price by 2.23ppl and 2.08ppl, respectively. First Milk and Leprino reduced their price by 2.00ppl each, which is their fifth month of consecutive decline. Barbers and South Caernarfon Creameries also cut by 2.00ppl. 

Announcements on manufacturing contracts followed those of cheese contracts. Meadow announced a reduction of 1.00ppl for another consecutive month. Dale Farm GB and UK Arla Farmers Manufacturing reduced their price by 1.91ppl and 1.75ppl respectively, according to AHDB. 

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