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December 8 2023 | £4.10 | Become a member from £2.09 | farmersguardian.com
THE HEART OF AGRICULTURE FARMING: THE BACKBONE OF BRITAIN
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Report and highlights from this year’s event
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PAGES 16,26,72
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TURNING POINT
● Arla announces December rise
● Production falls support markets
DAIRY producers were hopeful the end of 2023 could mark a turning point for dairy markets, after Arla delivered some pre-Christmas cheer with a December milk price rise. It follows more than a year of milk price declines and holds, and comes amid falling production in the UK and abroad. Arla increased its price for conventional and organic milk by 0.89ppl. This means the UK manufacturing price for conventional and organic milk will be 36.10ppl and 43.54ppl, respectively. For January, Barber’s and Saputo announced increases, while Muller held its price at 36.5ppl. Saputo confirmed its January negotiated base price for all core volume would be 36.5ppl, agreed with Davistow Creamery Direct, a rise of 1ppl on December. The Barber’s standard litre increased by 1ppl to 36.15ppl. Dairy market analyst Chris Walkland said the market had been ‘a lot stronger in recent months’. He added whether it was a turning point would depend on production,
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PICTURE: TIM SCRIVENER
By Alex Black
For January, Barber’s and Saputo announced increases, while Muller held its price at 36.5ppl.
which he said had ‘fallen off a cliff’, and post-Christmas demand. He said: “Buyers have now bought everything they need for Christmas and most of quarter one. They are not in a rush to buy supplies and sellers are not in a rush to sell.” Mr Walkland pointed to supplies in France and Germany, which he said had dropped significantly, as well as domestic production.
NFU dairy board chair Michael Oakes said production had been dropping on the back of tight margins and, in some cases, no margin at all, adding the rise was ‘much needed’.
Less milk He said: “If the market did not respond, there would be even less milk around.” He highlighted the industry also
needed demand to pick up, adding China was a massive player in that demand globally and was expected to come back to the market, but not at levels seen previously. He said: “But we also need to remember that below 40ppl is still for a lot of people below cost of production. Farmers are still feeling the pressure.” NFU Scotland’s milk policy manager Tracey Roan, who manages the Scottish Dairy Hub, said: “It is a welcome announcement from Arla for its Scottish producers, giving them a nice Christmas bonus, but, more importantly, putting down a marker with all milk purchasers on the direction that milk prices need to be going. “Milk volumes in Scotland will continue to dip in the coming months, so the price needs to rise next year. “We cannot push for more milk production on a such a low, unsustainable milk price. The current feed price versus milk price ratio shows how little incentive there is currently to increase production. That needs to change.” AHDB dairy lead analyst Susie Stannard expected the tightening in production would continue into the next CONTINUES ON PAGE 13
06/12/2023 17:12