December 21, 2009


Lowered production helps UK milk prices to increase



Average UK farmgate prices have increased by 0.38p/litre in October to 24.43p/litre, registering a recovery in prices.


Northern Ireland enjoyed the largest rise of 2.23p/litre, while Great Britain prices increased by just 0.12p/litre.


The price gap between the two regions has now dropped to 2.11p/litre, the smallest differential seen since February 2008, according to DairyCo's Datum service.


Farmgate prices traditionally rise between September and October due to changes in seasonality payments, as national milk production falls at this time of the year. The Northern Ireland market is more related to the commodity market, which helped the average prices there as commodity prices have been rising significantly from September.


UK prices are about 10.7% or 2.93p/litre, below the same month last year. Great Britain average prices are 3.24p/litre below October 2008, with Northern Ireland 1.02p/litre lower.


Monthly milk production also dropped 3.7% between October and November to 986 million litres. That was slightly above November 2008, bringing cumulative production to 8.634 billion litres, just one million litres below the same period last year.