UK, GB and NI Farmgate Prices
Published 28 July 16
|The challenges many dairy farmers face as a consequence of the current milk price and market volatility are of great concern. AHDB Dairy provides a range of tools and resources to help dairy farmers make informed business decisions during these challenging times #Decisions4Dairy
Defra farmgate prices represent the average price paid to producers for all milk sold to dairies. It is a weighted average calculated from information collected on total value and volumes of purchased milk in England, Wales, Northern Ireland and Scotland. The survey used to collect this information covers approximately 90% of all milk purchased from farms in the UK.
For information on representative prices paid to producers by individual milk buyers, please refer to the AHDB Dairy League Table
- According to the most recent Defra figures, the average UK farmgate price stood at 19.85ppl in June. This was a 0.47ppl (2.3%) decrease on the May average price. The June 2016 price was 3.90ppl (16.4%) lower than the same month last year.
The GB and NI milk prices will be updated on 4 August 2016, when the data is published.
- The GB average price was 21.01ppl in May, which was a 1.22ppl (5.5%) decrease on the previous month. This was a decrease of 3.69ppl (15.0%) compared with May 2015.
- The Northern Ireland (NI) average for May was 17.66ppl, a decrease of 0.50ppl (2.7%) compared with April. The May price was 3.21ppl (15.4%) lower than the previous year.
The February farmgate price originally reported by Defra was inflated by bonus payments made on annual production. As these extra payments were attributed, by Defra, to February milk production, they pushed up the average farmgate price. The same impact was seen in February 2015, although to a lesser extent. The February average price has now been adjusted to 22.93ppl, matching the estimate put out by AHDB Dairy last month. Using the new figures, the average price paid out in Februray 2016 was 8.5% lower (2.14ppl) than in the same month last year.
In Northern Ireland a larger proportion of milk goes into commodity markets and therefore the NI price tends to reflect the rises and falls in the commodity markets more than GB. For more information on commodity prices click here.
UK, NI and GB Farmgate Milk Prices (estimates excluding retrospective bonuses)
Values in the text may be slightly different to the table due to rounding.
For more information on UK, GB and Northern Ireland prices click here.
All 2014, 2015 and 2016 data is provisional and may be revised on a monthly basis.
Sources: Defra, DARD & AHDB Dairy
Please note, these graphs were updated in April 2016 to use milk prices excluding retrospective bonuses.
Average Yearly Prices
Please note the prices below now exclude retrospective bonuses.
Annual data shows that the UK farmgate price has decreased by 7.18ppl (22.8%) to 24.33ppl in 2015. In GB, there was a 6.94ppl (21.7%) decrease from the 2014 average, to 24.97ppl in 2015. The average NI price stood at 29.31ppl in 2014. There was an 8.54ppl (29.1%) decrease in the average price in 2015, resulting in a price of 20.77ppl.
Sources: Defra, DARD & AHDB Dairy
Please note, annual prices were updated in April 2014 and so this graph shows historic annual milk prices including retrospective bonuses.
The UK average milk producer price is collected by Defra. Milk purchasers provide details of how much they have paid farmers for milk (excluding any delivery and administration charges) and the volume of milk they have purchased. From these figures an average price per litre (which includes seasonality) can be derived. NI data is collected by DARD.
The challenges many dairy farmers face as a consequence of the current milk price and market volatility are of great concern. AHDB Dairy provides a range of tools and resources to help dairy farmers make informed business decisions during these challenging times #Decisions4Dairy