Milk price changes

Updated 06 January 2021

The latest publicly announced milk price changes as reported by the processors.

Overview

The trend of increasing milk prices continued into January, with more, and often higher, increases announced. The majority of market-based milk contracts in our table (downloadable below) had a price increase in the range of 2.00-3.20ppl announced for January.

One exception to this range was the UK Arla Farmer’s Manufacturing contract, which increased by 0.90ppl in January – but this was preceded by a 2.71ppl increase in December. Additionally, there was a 0.23ppl increase announced for the Sainsbury’s aligned contracts for January.

Overall, every contract included in the AHDB league table had at least one price increase in the last three months (Nov-Jan). Many of these contracts have now increased prices by 3ppl or more over this period. A number of contracts not included in our league table have also followed suit.

Looking ahead, there have been several further price increases announced for February, though these are generally a little more conservative than those seen in January. Crediton, Saputo UK, Muller and South Caernarfon Creameries have announced increases in the region of 0.75-1.00ppl. Yew Tree Dairy have announced a 0.50ppl increase on its liquid milk contract for February, plus a further 1.50ppl increase for March.

These price increases reflect the relatively low milk production and rising market returns for dairy products seen in the last few months of 2021. Analysis into how much uplift the market can sustain showed that although usual market trends suggest further price increases in February and March, some of this uplift may have actually been pushed through to farmers faster than usual in a bid to help boost milk production levels over the winter.

Additional information

The milk price changes may not be fully reflected in the AHDB League Table.

Download dataset

Latest milk price changes

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