Milk Price Changes

Published 5 July 19

Monthly commentary on the latest milk price changes publically announced by UK milk buyers

For July, a small number of milk buyers declared milk prices decreases, ranging between 0.50 – 0.60 ppl, but the majority of buyers held their prices for a consecutive month. With input costs for producers moving lower in the run up to harvest, some contracts that are linked to costs have followed downwards. Barber’s has implemented its proposed 0.2ppl premium for those who meet new hygiene* standards

For August, there has been some changes announced so far. Müller Tesco contracts have a decrease of 0.07ppl as a result of its quarterly cost tracker review. Müller Co-Operative has announced a decrease of 0.19ppl.

Wholesale markets have continued to steady over June with Fat prices slightly down. Farmgate price movements are forecast to be steadier, as a result of the stabilised wholesale market. June saw the earlier SMP price increases ease to be firm over the month. Butter prices crept downwards over the month as a result of low demand and reportedly high stocks. Based on changes to our Milk Market Value (MMV) indicator, the firmed markets will filter stability to farmgate prices over the next couple of months, if prices follow historical relationships.

*: achieve a low bacteria level of below 500 thermodurics. Thermoduric bacteria are able to survive pasteurisation and so impacts final quality of product.

For a list of the most recent announced milk price changes, click here

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