No Outlook for Increase in Cumbria Milk Price

UK - Cumbrian farmers are unlikely to see improved milk cheques until next year despite the rising market in cream and powder.

9 October 2009

2 minute read

Europe

Mike Taylor, the North West dairy board chairman for the NFU, told The Cumberland News this week that he didn’t think milk prices paid to farmers in the region would improve until 2010.

He said: “The milk price always comes down very quickly but it takes forever to go back up. We’ve taken many thousands of tonnes of cheese from Ireland and it’s being sold as own brand in the supermarkets. That is being sold very, very cheaply because Irish farmers were paid 17 pence per litre in the spring."

“The likes of First Milk and Milk Link are really taking a hit on this. They’re paying around 21 pence per litre for their milk and competing with this cheaper milk," Mr Taylor said.

“The price will go up eventually but I think it will be into 2010 before farmers start to see improvements in their milk cheque.”

Supermarkets are paying around 27ppl to direct liquid milk suppliers while at the same time selling the cheap Irish cheese, which in turn is forcing cheese manufacturers here to keep prices low.

Mr Taylor, a dairy farmer in Cumbria, has called on processors to free farmers from realisation contracts so they can shop around for the best milk price.

“Processors are banking on money that they’re making on the high cream price. I know farmers in Cumbria who are getting 18ppl, which is just not sustainable,” he added.

“Farmers are tied in for 12 months while the price is rising.” British commodity markets have been rising for many months now.