Milk price rises continue for dairy companies

27-Oct-2016 - Last updated on 28-Oct-2016 at 15:15 GMT

Milk price rises for Müller, Arla Foods and First Milk

Related tags Milk prices Milk Dairy farming

Dairy processor Müller has announced a two pence per litre (2ppl) rise to its milk from December 1, to 22.95ppl, after both Arla Foods amba and First Milk announced similar price rises for November.

Farmers would benefit from a separate retailer payment, meaning their estimated returns would be more than 24.3ppl, Müller confirmed. Its price rise meant its average milk prices would have raised 4.5ppl since October 1.

“There is now a real need to build confidence at farm level,” said Müller Milk & Ingredients agricultural director Lyndsay Chapman. “We understand current expectation surrounding the timing for milk prices to respond to the current upturn in commodity markets.

“We have a clear commitment to be competitive and through working with our Müller Milk Group Board farmer representatives, and we will continue to deliver prices that reflect the improving returns achieved within our business.”

More than 4ppl in three months

Arla Foods revealed a 1.49ppl milk rise for November to 23.14ppl. It had previously raised milk prices in both September and October, meaning its prices had risen more than 4ppl in three months.

The continued decline of milk production in a number of markets drove its European price increase, Arla said.

“This is the third consecutive month that Arla has increased its milk price, resulting in an additional 4.09ppl since September 1,” said Arla Foods board director Jonathan Ovens. “While the price is still not where it should be to be sustainable, it is a further positive move for our farmer owners.”

‘A further positive move for our farmer owners’

Elsewhere, First Milk raised its prices on all membership pools by 5ppl to 25ppl. The farmer-owned dairy company had now raised its milk prices by 10ppl in four months.

It also announced a 1ppl rise on its non-aligned contracts, but said it expected it to rise again by the end of October.

First Milk chairman Clive Sharpe said: “As occurred with our 5ppl price increase for August, this latest uplift to 25ppl gives members a clear indication that we expect our [non-aligned contract] prices to follow.

“Our next announcement would be later this month when we finalise November [non-aligned contract] rises.”