UK farmgate milk prices tracking below EU average

Thursday, 24 October 2019

By Felicity Rusk

So far this year, UK milk prices have tracked around £0.20 per kg of solids below the average of the main milk producing countries in the EU.

Market prices in the EU and the UK tend to follow the same trends. The wider EU tends to be more active in global markets, leaving their farm prices more exposed to global market movements. In contrast, with a large reliance on the domestic liquid milk market, UK prices, on average, tend to be much slower to respond to global trends.


When compared to other key milk producing EU nations, UK milk prices tend to lag behind due to lower milk solids. However, historically when we compare prices in £’s per kg of solids*, the UK has been competitive. This has not been the case since the start of 2017 when UK prices did not rise to the same extent as some other EU nations. Since then, the UK has continued to track below the other countries although the gap has closed slightly since the beginning of this year. 

 * Using average EU farmgate milk prices, as provided by DG Agri, we can re-base the figures to show them on a £ per kg of solids basis.


Felicity Rusk

Analyst - Dairy & Livestock

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