Milk Prices Continue to Rise

Farmgate milk prices continue to move in an upwards direction.  After last month’s announcements from Wiseman Muller and Dairy Crest of price increases from the 1st June, many more companies are also raising their prices from the start of the month.  Perhaps the most interesting is an increase in the Arla Milk Link price of 1.7pp, to 31.91ppl (from 27^th May).  This is the co-op contract and is based on the price that Arla co-op members in Scandinavia and Germany receive (see January Bulletin).  European prices have moved up sharply as a result of buoyant commodity markets and this is now feeding through into the Milk Link contract.

The Dairy Crest formula price (see March Bulletin for details) will increase by 0.74ppl to 30.67ppl largely thanks to the uplift in cream values within the formula.  Other price increases from the 1^st June include Meadow Foods (the 5^th largest milk buyer in Great Britain) up 1.25ppl to 31.25ppl; Caledonian Cheese / Lactalis (6^th largest) up 0.18ppl to 30.29ppl; Glanbia Cheese (7^th largest) up 1.30ppl to 30.3ppl and South Caernarfon Creameries up 1.10ppl to 30.60ppl.