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Farmgate milk prices are on the rise, reaching their highest levels since February 2023, as dairy processors announce autumn increases. The increase in prices is driven by strong dairy commodity markets, with UK butter values soaring by 81% in September. Additionally, cream, skimmed milk powder, and cheddar prices have seen gains as well.

According to AHDB’s senior dairy analyst, Soumya Behera, the outlook for price changes in the next few months looks promising, especially in the fats market which is currently at record-breaking levels. Despite tight milk supplies due to seasonality constraints, daily milk deliveries have slightly increased in recent weeks.

Although margins for producers have improved on-farm, they are still below the highs seen in 2022. Many dairy farmers producing high protein and butterfat content milk will also receive additional bonus payments.

In terms of milk price moves, Arla will increase its conventional milk price to 45.02p/litre in October, while organic producers will receive 55.89p/litre. First Milk suppliers will see a November price of 43.85p/litre, and Barbers Cheesemakers will pay a minimum price of 44.57p/litre in November with the potential for further increases. Muller and Freshways have also announced increases in their milk prices for November.

Freshways’ managing director, Bali Nijjar, highlighted the recent acquisition of Totally Welsh Dairy and integration of Milk & More as steps to better serve customers and support local Welsh farmers. The acquisition aims to expand their product range and meet the growing demand for sustainable dairy products.

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