Two major milk processors have said they are keeping milk prices unchanged amid uncertainty in global commodity markets.
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Arla and First Milk hold milk prices in uncertain market
© Littlewolf1989/Adobe Stock

Arla’s farmgate member milk price will remain at 52.24p/litre from 1 December for a standard manufacturing litre.

This is based on 4.2% butterfat and 3.4% protein for collection every other day, and follows a 1.33p/litre price rise for producers in November.

The December milk price is up 15.56p/litre on year-earlier levels.

The organic milk price will also be unchanged for December, at 57.02p/litre.

Arthur Fearnall, an Arla Foods amba board director and farmer owner, said: “Global milk supply levels continue to stabilise, with levels in Europe increasing. Global dairy commodity prices, including yellow cheese and butter, have declined from the previous high levels in October.

“The outlook is negative, driven by the continued decline in commodity prices.”

UK agriculture director Paul Savage said: “The last year has brought inflationary challenges for our farmer owners, and our teams across the UK have worked hard to deliver significant increases to both our conventional and organic farmgate milk price throughout the year.

“We are closely monitoring the decline in global commodity prices and, as a co-operative business, we remain committed to adding the most value for our farmer owners for the milk they work hard to produce.”

First Milk

Farmer-owned dairy co-operative First Milk will also hold prices in January 2023.

Producers will be paid 49.69p/litre for a standard manufacturing litre in January, including the member premium and regenerative farming bonus.

First Milk farmer director and vice-chairman Robert Craig said: “We have worked hard to build strong, stable relationships with our customers, and I am pleased that we can continue to provide milk price stability for our members in these uncertain times.”

Milk market indicators

Both the actual milk price equivalent (Ampe) and milk for cheese value equivalent (MCVE) fell during November.

Ampe dropped by 13% from 51.27p/litre in October to 44.69p/litre in November, while MCVE fell by 3% to 52.2pp/litre.

Eleven organic dairy farms in Vermont closed in 2021. The next year, 18 more followed. And this year, the Northeast Organic Farming Association of Vermont expects to lose another 28 farms.

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