Milk price changes
Updated 04 November 2021
The latest publicly announced milk price changes as reported by the processors.
There was another flurry of milk price increases in November, with many processors following in the footsteps of those who increased in October. This month, increases on market-led contracts were in the range of 0.50-1.5ppl, with many opting for a 1ppl increase. This reflects the increases in dairy product prices seen over the last few months. Additionally, Tesco aligned contracts have risen by 0.7ppl following the latest review – this reflects increasing costs of production.
Looking ahead, several companies have already announced for December. These include First Milk, Crediton, Glanbia and Belton, all increasing by 1ppl, while Saputo will increase by 1.5ppl. South Caernarfon Creameries, who last announced a change in July, will be increasing by 1.5ppl in December and then another 1ppl in January. Barbers Cheesemakers have declared a price hold in December.
In related news, Arla has announced that it will be increasing its 13th payment from 1€c/kg to 1.5€c/kg – a 50% increase. This will be paid out in two instalments, at half year and full year (September and March), but is dependent on the cooperative achieving an annual net profit of at least 2.8% of revenue.
In general, these price increases follow improved market returns, as shown by the higher values for AMPE and MCVE in recent months. This will be welcome to farmers, who have been facing increasingly higher input costs. However, processors are also facing margin pressure due to higher costs, which may limit how much prices can increase in the future, unless market returns are adjusted in line with the increase in costs.
The most recently announced milk price changes can be downloaded below.
The milk price changes may not be fully reflected in the AHDB League Table.
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