Various processors have announced upwards moves in milk prices as Covid-19 lockdown measures continue to ease further.
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It follows months of severe milk market turmoil, with farmers bearing a disproportionate amount of the cost in the supply chain due to non-negotiated contract changes, price cuts, unilateral implementation of A/B quotas, and delayed payments.

The moves will see a 26ppl liquid standard price by August 1 as the minimum, with cheese manufacturing standard of 28ppl.

Market analyst and Dairy Farmer columnist Ian Potter said: “Any falling below this liquid standard litre price, with spot trading at 30ppl up or very close, must be challenged.”

Top of the league table is Arla, whose conventional milk and organic milk price will remain unchanged for August 2020.

Its standard price for conventional milk will be 28.17ppl and organic milk 36.21ppl.


Arthur Fearnall, Arla Foods amba board director and farmer owner, said: “Overall, commodity prices have stabilised after the initial impact of restocking, as countries started to open up after lockdown.

“The last GDT auction saw a record increase in whole milk powder prices, driven largely by short-term demand for August and September.

“Outside the auction, prices did not increase as much and have soon settled back to pre-auction prices.

“Prices overall remain below pre Covid-19 levels, with the current outlook remaining stable.”

A former Fonterra consultant and a molecular biologist have teamed up to create lab-grown milk proteins without the need for a cow.

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