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Agribusiness News April 2023 – Milk

3 April 2023

UK prices reduce during April

  • UK milk output increased to 1,151.92m litres during February 2023 (up 23.16m litres on February 2022).
  • After a period of record high milk prices in the UK, milk output is elevated. Production across the UK and EU remains high relative to consumer demand.
  • Widespread milk price reductions have been confirmed by UK milk buyers as the market adjusts to higher supply volumes.

Milk production statistics from AHDB Dairy shows that output for February 2023 is estimated at 1,151.92m litres (before butterfat adjustment) – an increase of 23.16m litres on a year-on-year basis.  Cumulative UK production for the 2022/23 milk year to the end of February 2023 stands at 13,581.03m litres (before butterfat adjustment).  Cumulative production to the end of February 2023 is now only 20.87m litres lower than the same time last year.  The UK average milk price for January 2023 is estimated at 49.20ppl – down 2.40ppl from the December 2022 average price (51.60ppl).  The average milk price for January 2023 is, nonetheless, some 13.72ppl higher than the average price one year earlier during January 2022.

Farmgate prices: April 2023

Announcements for March & April 2023 are as follows:

  • Arla Foods amba – A late announcement at the end of February for March milk prices. The Arla milk price reduced by 4.00-euro cents from 1st March 2023.  The manufacturing standard litre price reduced by 3.52ppl from 48.47ppl to 44.95ppl.  The liquid standard litre price reduced by 3.39ppl from 46.57ppl to 43.18ppl.
  • Tesco – The Tesco Sustainable Dairy Group (TSDG) milk price is to reduce by 1.50ppl from 1st April 2023 (in line with the reduction to the Müller Direct milk price reduction). The decrease takes the liquid standard litre price down from 44.00ppl to 42.50ppl.  The milk price will reduce from 43.75ppl to 42.25ppl for Arla TSDG members.
  • Sainsburys – 0.54ppl price reduction from 1st April 2023. This takes the liquid standard litre price down from 44.44ppl to 43.90ppl for Müller suppliers.  Arla members of SDDG will receive the same 0.54ppl reduction from 1st April 2023 and will see their prices move down from 44.32ppl to 43.78ppl.
  • Co-op – 1.18ppl price reduction from 1st April 2023. This takes the liquid standard litre price down from 44.15ppl to 42.97ppl.
  • Müller Direct – 1.50ppl price cut from 1st April 2023. This takes the liquid standard litre price for Scottish suppliers down from 43.75ppl to 42.25ppl.  See table, below.
  • Müller Lidl – 1.50ppl price cut to the Müller-Lidl fixed price contract from 1st April 2023. This reduction is in line with the reduction to the Müller Direct milk price and takes the liquid standard litre price down from 44.00ppl to 42.50ppl.
  • Grahams Dairies – 2.00ppl reduction from 1st April 2023. This takes the liquid standard litre down from 40.00ppl to 38.00ppl.
  • First Milk – 3.00ppl price cut confirmed from 1st April 2023. See Milk Price table, below.
  • Fresh Milk Company – 2.31ppl price cut from 1st April 2023. This takes the liquid standard litre price down from 41.81ppl to 39.50ppl (see table below).
  • Yew Tree Dairy – 2.00ppl reduction to A volume litres from 1st April 2023. This takes the liquid standard litre price down from 44.00ppl to 42.00ppl.
  • Arla Directs – 3.53ppl price cut from 1st April 2023. The manufacturing standard litre price reduces from 45.93ppl to 42.40ppl.  The liquid standard litre reduces from 44.09ppl to 40.70ppl.

Dates for Your Diary

Digital Dairy Chain – Knowledge Exchange Event
19th April 2023 (10.00hrs – 15.00hrs)
Easterbrook Hall, Crichton, Dumfries DG1 4UQ
This is a FREE event to attend, with tea/coffee & lunch provided. For more details please email rachel.cook@sruc.ac.uk

 

alastair.beattie@sac.co.uk, 07771 797 491

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