Overview
Milk price announcements were relatively steady in August, with the exception of aligned liquid contracts. All retailers in the AHDB league table dropped their milk price for August with Tesco making the largest announcement of the month at -1.68ppl. This was followed closely by Waitrose and M&S who dropped their prices by -1.40ppl and -1.34ppl respectively. Co-op made a change of -1.09ppl while Sainsbury’s made the smallest change of the retailers at -0.57ppl.
On non-aligned liquid contracts there were fewer and smaller changes than those on aligned milk contracts. Graham’s dairies announced no change to their milk price for the second month in a row, Payne’s dairies however announced a price drop of -0.50ppl following a hold in July. Freshways and Crediton both announced a hold to their milk price for August, while Muller Direct and Yew Tree dairies dropped their prices by a further -1.00ppl.
There were more positive notes coming from announced changes to cheese contracts in August with South Caernarfon Creameries the only processor to drop their price (-1.00ppl). Glanbia now Leprino Foods held their price for the third month in a row and Belton held their price for the second month in a row. First Milk, Lactalis, Parkham Farms and Wyke Farms also announced no change to their prices in August. More positively, three processors, Barbers, Saputo and Wensleydale, bucked the trend and increased their milk price for August by +0.75ppl, +0.50ppl and +0.12ppl respectively.
Announcements on manufacturing contracts followed those of cheese contracts. Pattemores Dairy Ingredients continue to hold their price, now the third month in a row with no change. Arla also announced no change to their price for August, but Meadow Foods announced a further drop of -1.00ppl.
Looking at the snapshot of price changes that have been released for September so far, it appears that there could be some more stability in milk prices with price holds and smaller price declines having been announced.
