betweenthelines
Member
- 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?
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?