Milk Price Tracker

Location
southwest
Processors have an easy ride because farmers really don't understand the milk market, as this thread proves.

The UK milk products market is less than 70% self sufficient in milk, so references to so called world prices are partially correct, however over 45% of fresh milk is sold on the liquid retail market.

So only about 30% (at most) of the ex farm price is subject to open market prices and the rest is dictated by the retail price. You'd have to see the shop price of fresh milk cheese butter etc goes down by 10% to reduce ex farm prices by about 1p per litre.

Likewise, where's the money coming from for a price increase unless the processors have been doing well recently?
 
Processors have an easy ride because farmers really don't understand the milk market, as this thread proves.

The UK milk products market is less than 70% self sufficient in milk, so references to so called world prices are partially correct, however over 45% of fresh milk is sold on the liquid retail market.

So only about 30% (at most) of the ex farm price is subject to open market prices and the rest is dictated by the retail price. You'd have to see the shop price of fresh milk cheese butter etc goes down by 10% to reduce ex farm prices by about 1p per litre.

Likewise, where's the money coming from for a price increase unless the processors have been doing well recently?
I think your the one who doesn't understand markets.
the only way your argument works is we produce less than the 45% of fresh milk you talk of all the rest is cheaply importable.
recent higher price are due unsurprising to higher European commodity prices.
 

sidjon

Member
Location
EXMOOR
Have we hit the high now??
Screenshot_20181009-213922_Facebook.jpg
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
Chatting over a brew with my buyer today. Thinks we’ll be lucky to get to Christmas without a drop of at least a penny. All hangs on arla’s next move due in a few weeks.. Muller were all lined up to drop this month apparently
 

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