Dairy News July 3, 2014 12:00 am Milk Price Cuts Two of the main players in the British milk market have announced further price cuts. Following Arla’s reduction reported last month Muller Wiseman has announced a 1.2ppl price cut from the 3rd August. This brings its standard litre price down to 30.8ppl. First Milk will reduce its prices from the 1st August. The liquid pool price reduces 1.75ppl to 28.75ppl. The manufacturing pool is cut 1.25ppl to 29.6ppl for a standard litre. Oddly, the company was claiming that its liquid price was going to end up higher than the Arla Amco price – but the maths do not seem to bear this out. It is to be hoped that this may signal the last set of price cuts (at least for a few months). With the spring flush over, and spot prices firming, then the justification for further decreases looks increasingly weak. DC Fonterra Joint Venture Dairy Crest has signed a partnership agreement with global dairy giant Fonterra. The New Zealand based firm will be responsible for the marketing of the whey powder to be produced at DC’s Davidstow factory, once a £45m investment has been completed. Whey production is expected to commence in the middle of next year. Fonterra will use the powder in baby milk, with the majority of the product aimed at the growing Asian market. New Dairy Farms According to figures released by the Food Standards Agency at the Livestock Event, around 200 new dairyunits have been set up in the UK since April 2012. Although other producers continue to exit the industry, the fact that some are willing to invest to bring new dairy farms into existence shows improved confidence in the sector.
