Rising Farmgate Milk Prices Boost Processor Profits
Dairy farmers supplying Meadow and Freshways can look forward to a higher milk price this autumn, in line with the positive trends in the wider industry. Commodity markets are showing strength with price increases for cream, butter, and mild cheddar, leading to improved manufacturing contracts.
With milk supplies remaining tight and below last year’s levels, prices are being supported, with daily milk supplies at 31.9 million liters. Meadow suppliers will see a 1p/litre increase in October, bringing the milk price to 41p/litre. Freshways suppliers will also receive a 1p/litre increase in October, rising to 41p/litre, followed by a further increase to 42p/litre in November.
Arla Foods reported a net profit increase in the first half of 2024, attributing it to growth in volume sales of branded products in the UK. First Milk also saw an increase in operating profit, while Leprino Foods experienced a decrease in profits in 2023.
Overall, the dairy industry is experiencing positive momentum, with companies making strategic investments and adjustments in response to market trends. The outlook for the second half of the year remains positive, despite some challenges in commodity markets and global supply dynamics.
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Maria Sanchez completed her Bachelor’s degree in Plant Sciences from the University of California, Davis, in the USA. Her studies focused on plant genetics and biotechnology, with an emphasis on developing disease-resistant crop varieties. Maria has contributed to several research projects aimed at improving crop resilience to climate change and is now pursuing her Master’s degree in Plant Breeding.