In a move reflecting market stability and confidence in the face of ongoing challenges, prominent dairy players such as Arla, Müller, Wyke Farms, and Barbers Cheddar Cheese have unveiled plans to implement price increases for March and April.
Müller Advantage contract farmers are set to receive a 1ppl (pence per liter) boost, raising the rate to 37.5 ppl from April 1. Müller Milk & Ingredients’ Head of Agriculture, Richard Collins, emphasized the commitment to supporting supplier farms amid stable market conditions, ensuring the reliability of supplies.
Arla has adjusted milk prices in March, elevating both regular and organic milk by 1.0 euro cent per kilogram. Consequently, the prices stand at 40.06 pence per kilogram for regular milk and 47.38 pence per kilogram for organic milk in the UK.
Organic Herd, formerly Omsco, has incrementally raised milk prices by 0.5 cents each since April, with an additional 0.5 ppl increase in March, resulting in a total price of 50 ppl per standard liter.
Cheese producers Wyke Farms and Barbers have also shared positive news regarding price adjustments for April. Wyke Farms announced a growth to 39 ppl (4.2% fat, 3.4% protein), surpassing Barbers by 0.70 pence. Barbers, on the other hand, disclosed a 0.52 pp.l. increase, setting the standard liter price at 38.72 pp.l. The company noted the atypical April increase, attributing it to the season’s peak milk supply.
As the dairy industry navigates the aftermath of a challenging year marked by price cuts, the outlook for milk suppliers remains optimistic in early 2024. Many processors have implemented price hikes for January and February, extending into March and April. This positive trend follows a year in which farmgate milk prices experienced a decline from the 2022 all-time high, presenting challenges to farmers amidst increased raw material costs. In January, Defra reported an average milk price of 37.68 cents per liter, reflecting a marginal decrease of 0.24 cents compared to the previous month.
