Latest UK farmgate milk prices revealed

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According to the most recent DEFRA figures, the average UK farmgate price stood at 26.30ppl in January.

This was a 1.29ppl (4.7%) decrease on the December average price.

The January 2015 price was 7.57ppl (22.4%) lower than the same month last year.

The GB average price was 27.01ppl in January, which was a 1.41ppl (5.0%) decrease on the previous month. This was a decrease of 6.85ppl (20.2%) compared with January 2014.

The Northern Ireland (NI) average for January was 22.33ppl, a decrease of 0.46ppl (2.0%) compared with December. The January price is 11.58ppl (34.1%) lower than the previous year.

In Northern Ireland a larger proportion of milk goes into commodity markets and therefore the Northern Ireland price tends to reflect the rises and falls in the commodity markets more than GB.

Meanwhile, growth in EU milk deliveries slowed towards the end of last year, with December deliveries sitting 1.3% higher than in 2013. This is likely to be the result of lower farmgate milk prices, combined with countries threatened by superlevy reining in production.

Growth is predicted to continue with the disappearance of quotas at the end of March, but is likely to be partly hampered by expected weak farmgate prices in the short term.

In December 2014, 11,391 million litres of milk were delivered to dairies in the EU-28, an increase of 141 million litres (1.3%) on December 2013.

For the milk year beginning April 2014, there is a cumulative year on year increase of 4.2%. Compared with the previous month, there is an increase of 478 million litres (4.4%) following seasonal trends.

However, in the UK, deliveries for the two weeks ending 28/02/2015 averaged 38.9m litres/day, 0.7m litres/day (1.7%) lower than the same period last year.

Daily deliveries for this period were 1.7m (4.6%) higher compared with the 3-year average.