Milk Price Changes

Published 5 April 19

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

There is a split in the announced price changes for April. Contracts aligned to cost of production saw increases in the range of 0.24-0.54ppl. Some Non-aligned contracts saw declines between 0.30-1.00ppl, while Crediton announced a 0.5ppl increase. However, most contracts held their price in April.

April is also the start of the new First Milk member premium, announced at 0.25ppl.  The actual premium paid will be calculated on a pro-rata basis linked to a member’s level of capital payments.  The returns will be accrued monthly over the milk year, and paid as a lump sum in April 2020.

Looking ahead, Dairy Crest and Barber’s have both announced that they will be holding their May milk price.

Uncertainty is currently the main feeling on the wholesale markets. High milk volumes in the UK and anticipation of the flush, combined with a lack of progress with Brexit have made buyers hesitant, leading to steady or declining prices. AHDB’s Milk Market Value (MMV) indicator suggests that these declines could feed through to farmgate prices over the next couple of months, if prices follow historical relationships.

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

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