April 15, 2010

 

UK farmgate milk prices fall; commodity prices rise
 

 

Average farmgate milk prices in the UK fell by 0.51p/litre (US¢0.79/litre), a drop of 2.1% between January and February, while commodity milk prices surge this month, according to the Department for Environment Food and Rural Affairs (DEFRA).

 

In February, farmgate prices stood at 24.16p/litre (US¢27.46/litre), a dip of 0.52p/litre (US¢0.81/litre) from the same time a year ago.

 

However, commodity prices are on the rise, and Northern Ireland's latest United Dairy Farmers auction saw 45 million litres of milk average 25.63p/litre (US¢39.74/litre) for April delivery - 2.31p/litre (US¢3.58/litre) higher than in March and 6.8p/litre (US¢10.54/litre)  above a year ago.

 

"The auction produced yet another record-breaking result with the highest March price in the past 10 years, by a substantial margin," said the report.

 

World wholesale prices are also improving, with Fonterra's latest auction seeing price rises of at least 21% between March and April, and whole milk powder reaching the highest level since July 2008.