May 7, 2010


Outlook for UK milk prices improves


There are now positive signs for UK milk prices after a number of processors increased farmgate milk prices in recent weeks.


Upward movement was seen from Arla, Milk Link, First Milk, Glanbia and Wyke Farms and the National Farmers Union (NFU) said while the moves were long overdue, they were gladly welcomed nonetheless.


NFU Dairy Chairman Mansel Raymond said it was vital those trends continue and processors respond to positive signals in the milk market.


He said, ''With market conditions providing strong grounds for a sizeable increase, there are still a number of questions that need to be asked to those processors that have as yet not moved, or not moved by enough. I will make it my task to ask these questions.''


''Most UK commodity prices increased again in April, the price of mild cheddar increased for the first time since November 2009, milk production in the southern hemisphere is forecast to be lower than 2009 - all suggesting that milk prices should go even higher in liquid and cheese. Indeed on the cheese market specifically, the production of cheese in Britain has fallen again last month, imports of cheddar are down by 15% and domestic demand is increasing,'' he said.


''While the May milk price increases are a step in the right direction, this momentum needs to be continued and sustained by all milk processors. These are long overdue movements, and farmers should rightly be asking for much more of the same in coming months,'' he said.