DairyCo

League Tables

Published 7 July 10

UK Milk Producer Price League Table

1. The milk prices listed above will vary according to the amount of milk that is required by each retailer. Additional milk will be paid for at the conventional liquid milk price of Dairy Crest (DC). The milk price above assumes that all litres produced are sold into the dedicated milk pools.
2. Farmers signed up with the Promar costings survey get an additional 0.50ppl
3. Unconfirmed Prices

Milk prices are ranked according to the annual average price that would be paid on a contract for 12 months going forward if the present price schedule remained the same.

Prices listed above are exclusive of:  Capital Retentions, Administration Charges, Farmer Group Subscriptions, and VAT.

Prices listed above are inclusive of:  DairyCo Levy, Seasonality.
 
NOTES

Milk Price Changes

In June, there was a continuation of increases in milk prices, although the majority have been on cheese contracts.   A further increase in AMPE in June, along with the first rise in Mature cheddar prices for 18 months, indicates that wholesale markets remain strong.  With the sustained improvement in market conditions, and the increase in cheese contract prices, price rises from liquid processors are starting to filter through.

Over the past three months, most of the main cheesemakers have increased prices on their contracts. Wholesale markets have started to improve, with prices for mild and mature Cheddar increasing over the past three months on EU and UK markets.  Export demand is growing, which along with the weakening Euro exchange has further supported the cheese markets.  Both Dairy Crest and Milk Link have announced a 0.75ppl increase from 1 July on their cheese contracts, while a succession of price rises by First Milk means that farmers on their cheese contracts will see their milk price rise by 1.0ppl in total by 1 July compared to the beginning of the year.

The 0.54ppl increase in Milk Link's Cumbrian Direct Group contract has moved its standard litre price up to 23.96ppl, comparable to Dairy Crest's and Arla's non-aligned liquid standard litre price.  Similarly, Saputo has implemented three successive increases of 0.5ppl in May, June and July, which will raise their standard litre price to 23.88ppl for July, and the 1.0ppl increase from Parkham Farms in June, this will have the effect of moving them up into the top third of the milk league table, similar to some liquid contracts.

Other cheese contracts to have increased their prices in the past three months are Belton Cheese, up 0.3ppl from 1 May, Caledonian Cheese up 1.0ppl from 1 July, while Glanbia have announced two increases of 0.5ppl for May and June.  Wyke Farms' price will go up by 0.75ppl in total by July, with a 0.5ppl increase in May and a further rise of 0.25ppl from 1 July. 

For the liquid milk market, the movement in prices for cheese contracts into the region of liquid contracts will intensify competition for milk supplies, and may lead to a review of current contract prices.  To date, there has been no movement in the top of the League Table, although there is some evidence that rises are imminent with recent price increases announced by First Milk and Milk Link on their liquid contracts.  From 1 July, the milk price on First Milk's liquid contract will have increased a further 0.6ppl while Milk Link's price will rise by 0.75ppl.  Arla and North Milk Co-operative have also announced a 0.5ppl increase effective 1 June 1.

May

Arla: 0.25ppl increase on its Asda contract from 1 May, First Milk: 0.25ppl increase on its cheese, balancing and Highlands & Islands contracts from 1 May, Milk Link: 0.5ppl increase on all contracts and 0.54ppl increase on its Cumbrian Direct group contract from 1 May, Wyke Farms: 0.5ppl increase from 1 May, Belton Cheese: 0.3ppl increase from 1 May, Glanbia: 0.5ppl increase from 1 May, Saputo: 0.5ppl increase from 1 May

June

Arla: increase of 0.5ppl on all contracts except Tesco contract, First Milk: 0.5ppl increase on cheese contracts, 0.35ppl on balancing contracts and 0.3ppl on liquid contracts, North Milk Cooperative: 0.5ppl increase, Glanbia: 0.5ppl increase, Parkham Farms: 1ppl increase, Milk Link: increase of 0.88ppl on the Cumbrian Direct group contract, Saputo: 0.5ppl increase.  All price increases are effective 1 June.

July

Dairy Crest: increase of 0.75ppl on the Davidstow contract, First Milk: 0.6ppl increase on liquid contract, 0.4ppl increase on balancing contract, 0.25ppl increase on the cheese contract, Milk Link: increase of 0.75ppl on all contracts, Meadow Foods: increase of 1.0ppl, Lactalis/Caledonian: increase of 1.0ppl, Saputo: 0.5ppl increase, Wyke Farms: 0.25ppl increase.  All prices increase are effective from 1 July.

NOTES

Standard Litre

Note: Volume is based on 800,000 litres on EODC (unless only EDC is available) on a profile equivalent to the UK national average profile of the past three years. (Details can be accessed at the link below.)