Two large dairy processors said they were keeping milk prices unchanged amid uncertainties in global commodity markets.
The price of milk for Arla’s farmgate members remains at 52.24 pence per liter of standard production from 1 December.
This is based on 4.2% butterfat and 3.4% protein collected every other day and follows a price increase of 1.33 pence per liter for producers in November.
Milk prices rose 15.56p/l in December from the previous year’s level.
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Organic milk prices also remained unchanged at 57.02p/l in December.
Arthur Fearnall, Director and Farmer Owner of Arla Foods amba said: Global dairy prices, including yellow cheese and butter, have fallen from their October highs.
“The outlook is negative due to continued declines in commodity prices.”
UK Agriculture Chief Paul Savage said:
“We are closely monitoring the decline in global commodity prices and as a cooperative business we remain committed to adding maximum value to the milk our farm owners work so hard to produce.”
Farmer-owned dairy cooperative First Milk will also keep prices unchanged in January 2023.
Producers will be paid 49.69 pence/liter per standard production liter in January, including member premiums and regenerative farming bonuses.
Robert Craig, First Milk farmer’s director and vice chairman, said:
milk market indicators
Both the actual milk equivalent price (Ampe) and cheese equivalent milk equivalent (MCVE) fell in November.
Ampe fell 13% to 44.69p/l in November from 51.27p/l in October, while MCVE fell 3% to 52.2pp/l.