Farmgate milk prices may have potentially peaked as markets begin to stabilise after a sustained period of growth throughout most of 2024.
Dairy markets remain relatively strong overall, with butter, cream and cheddar continuing to trade at a significant premium to this time last year. However, UK wholesale prices have recently started to stabilise.
As a result a number of milk processors have committed to price holds into January, following a flurry of increases through the summer and autumn.
Dairy producers supplying First Milk will continue to receive 45.35p/litre in January for a manufacturing standard litre, including its members premium.
First Milk vice-chairman and farmer director Mike Smith said: “With stable markets and our business performing in line with our expectations, we will hold our milk price for January.”
Barbers Cheesemakers has followed suit and will stand on at 46.10p/litre for a standard manufacturing litre in January, after nine consecutive monthly increases.
Muller has also confirmed to Farmers Weekly a further hold into the new year and will pay its farmers 42.25p/litre for a standard liquid litre in January.
December gains
Arla has increased its December price by 0.89p/litre to 48.54p/litre, while its organic producers will be paid 58.53p/litre.
This increase will be welcomed by its suppliers; however, the co-operative has indicated that growth in retail sales is slowing and both commodity and retail markets are stabilising, which may limit further price increases in the new year.
Milk supplies
GB daily milk supplies averaged 33.9m litres for the week ending 23 November.
Milk supplies had been trending 5% higher on the year during most of November. However, this gap tightened to 3.6% in late November as volumes eased back.
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