June 14, 2010


UK milk prices trail behind EU


UK milk prices are falling further behind those elsewhere in Europe, with March average price stood at 24.1p (US¢35.2)/litre, 9% below the EU-25 average of 26.6p (US¢38.8)/litre, according to the latest research.


That meant the UK's position among the EU-25 had slipped from 12th in September 2009 to 19th, just six places off the bottom.


"Farmgate prices in the UK have been slow to respond to rising commodity markets. This can partly be explained by the high level of UK production that is processed into liquid milk, which means our farmgate price is not as volatile as other EU-25 countries," the report said.


But there were positive prospects for UK prices. The peak spring production period had been passed and the two milk price indicators, Actual Milk Price Equivalent reached 30.5p (US¢44.5)/litre and Milk for Cheese Value Equivalent moved to 30.4p (US¢44.4)/litre, it added.

There was a slight (1%) downturn in UK dairy advertising, according to the report. Just under GBP114 million (US$166.5 million) was spent on advertising dairy products in the UK during 2009/10, GBP1 million (US$1.46 million) less than the previous year.


The largest spend was in the yogurt and fromage frais category, which accounted for a 41% share of the total. Some 24% was spent in the cheese category, liquid milk accounted for just 6% of the total dairy advertising spend, despite having the biggest share of the retail dairy market.