THE UPWARD swing in milk prices continued this week, with farmgate returns creeping closer and closer to the magical 30p per litre for some producers. By: Douglas MacSkimming
Farmer-owned mega co-op Arla Foods announced it was raising its milk price by one eurocent per kilogramme from August 2. When that increase to its on-account price is applied to the UK standard manufacturing litre, it equates to an upward movement of 0.81p, taking the UK standard litre for conventional milk to 29.98p.
Commenting on the move, Arla Foods amba board director Johnnie Russell said: “I’m pleased that Arla is able to continue to reflect the market sentiment in its milk price for a second consecutive month.
“The current market situation is characterised by strong demand and low stocks of fat and this is driving up prices for products containing fat.”
Those disenchanted Scottish producers who jumped from the now defunct Sorn Milk to supply Yew Tree, run by the Woodcocks at Skelmorsdale, Lancashire, can now look forward to a 1.5p per litre rise from August 14, which takes their standard litre price to 29p.
Another closing in on 30p is Dairy Crest, which will increase the price to its Davidstow contract farmers by 1p to 29p from September 1, despite earlier saying it was holding the price at 28p from July through to September.
Group procurement director Chris Thomson explained: “Since May, there have been some significant increases in dairy commodity prices, particularly fats.
“We have therefore decided, with support from our Dairy Crest Direct group, to raise our price ahead of the expiry of our agreement made in April.”
Source: The Scottish Farmer