Farmgate milk prices have been held steady for January and February.
Dairy processors look to be adopting a cautious stance amid nervous markets despite strong wholesale dairy markets through much of last year, recent declines in butter and cream prices have created uncertainty.
Currently GB milk supplies remain about three per cent higher than the same period last year, putting additional pressure on farmgate prices.
Key milk market indicators, including the actual milk price equivalent (Ampe) and milk for cheese value equivalent (MCVE), are showing downward trends. Internationally, wholesale butter prices in the US and EU are softening, although skimmed milk powder has seen better support in global markets.
Rabobank forecasts a 0.8% growth in global milk supply for 2025, while also suggesting farm margins could improve. Longer term, the EU Commission predicts a decline in EU milk production as shrinking dairy herds outweigh milk yield improvements.
Cheese and whey production across the EU is expected to grow, albeit more slowly, while overall EU dairy consumption is projected to remain stable.
Despite uncertainty in commodity price movements, the stability of milk prices across major UK processors signals a positive trend for the dairy sector as it navigates the early months of 2025.
Arla: The co-op will maintain its on-account prices for January, with conventional milk at 48.54p per litre and organic milk at 58.53ppl. Arla noted a slight increase in global milk supplies and modest retail sales growth but indicated a weaker outlook for commodity markets post-festive season.
First Milk: Prices will hold steady at 45.35p per litre, including the member premium. Vice-chairman Mike Smith remarked that the business was performing as expected, so the co-op would maintain its pricing.
Müller: Farmers in Müller’s Advantage scheme will continue to receive 42.25p per litre. The scheme focuses on improving supply chain collaboration, herd health and environmental sustainability.
Organic Herd: Continue to maintain their January farmgate milk price at 56ppl.
Grahams: The Scottish processor has confirmed no changes, maintaining a standard milk price of 40ppl for a standard litre and 48.4ppl for Jersey milk.
Heifers flying
The stable market has offered some confidence to the first monthly dairy sale at Borderway Mart, Carlisle, which set the tone for the year with a buoyant trade across a range of dairy cattle.
Prices were solid with milking heifers averaging £2333, with the sale leader being John Adamson’s Ayrshire, Swaites Dewdrop, which reached £3600. This freshly calved heifer, an Ardmore Jeepers Creepers daughter from Swaites Farm, Pettinain, Lanark, sold giving 40kg. She was bought by Messrs Taylor, Lockerbie.
Other notable prices included £2750 for Swaites Sapphire 13, another freshly calved Ayrshire heifer, sold to Messrs Kennedy, Linlithgow, West Lothian.
John Lyle’s Pacific herd of Holsteins from Nether Pratis also attracted attention, with an average of £2500. The top lot was Pacific Lugnut Beauty, a Westcoast Lugnut-sired heifer sold for £2800 to Norman Greer, Carnbo, Kinross.
The Romanway herd, from the Turnbull family in Plympton, Devon, saw Romanway Present, a Bomaz Episode-sired heifer, top at £2750. The in-calf Holstein heifers were also in demand, with Edward Wilson’s offering from Petteril Hill Farm, Carlisle, achieving £2300. This was for a Westcoast Redcarpet daughter which sold due in February to Ritmo sexed.
The market showcased healthy demand for both fresh and in-calf dairy cattle, indicating a positive outlook for the industry.
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