DairyCo

Liquid Milk Margins

Published 18 May 09

Liquid Milk Margins

Liquid milk processor gross margins are based on the difference between the wholesale price of liquid milk (as estimated by DairyCo Datum) and the DEFRA farmgate price. The DEFRA farmgate price is an average of all farmgate prices and will lead to small discrepancies in the absolute level of the margin. However, discrepancies should remain relatively constant year on year therefore the change in margins over the past 10 years should be accurate. In addition, cream income is ignored from the calculation - this will increase the processor margin. To view the range of farmgate prices currently being paid please click here.

Retail Liquid milk retail gross margins are based on the difference between the wholesale price of liquid milk (as estimated by DairyCo Datum) and the average supermarket retail price of liquid milk (fully weighted from TNS data).

For more details on liquid margins click here, or see the Ensuring a Sustainable Dairy Supply Chain Report.

Please note: Figures for liquid milk margins have been re-weighted in 2009. Monthly retail prices have been used since April 2007, compared to annual average prices prior to April 2007.