DairyCo

UK, GB and NI Farmgate Prices

Published 7 July 10

UK, NI and GB Farmgate Milk Prices

Average Farmgate Price

• Between April and May, there was a marginal increase in the average UK farmgate price of 0.06ppl (0.3%) to 23.62ppl.
• In GB, the price fell by 0.02ppl over the same period to 23.37ppl.
• The NI price rose by 0.44ppl (1.8%) from 24.56ppl in April to 25.00ppl in May.

The average UK farmgate price stood at 23.62 in May, according to provisional data from Defra, an increase of 0.06ppl on April's price of £23.56ppl.  This is contrary to the normal seasonal pattern of a price decrease in May. 

Between April and May, there was a negligible fall in the average GB farmgate price of 0.02ppl to 23.37ppl .

Annual comparisons must be taken with some caution as the May price in 2009 was particularly low due to the collapse of DFOB.  Using the adjusted milk price for May 2009 (see notes below), the UK price has risen by 1.12ppl (5.0%) from 22.50ppl while in GB, the price is up by 0.05ppl (0.2%) for May 2010 from 23.32ppl.

Annual comparisons show that the NI price has increased by 7.14ppl (40.0%) from 17.86ppl in May 2009, to 25.00ppl in May 2010. The improved price is a reflection of the increases in commodity prices in recent months.

NB. The May and June milk prices in 2009 have been calculated excluding milk supplied to DFOB, as the co-op did not pay for any milk collected in May and paid a reduced price for milk supplied in June and July. The effect is negligible in July 2009, when there were very limited supplies to DFOB. When this milk is included in the workings, the UK milk price for May falls to 20.60ppl and June falls to 22.40ppl. The GB price for May falls to 21.09ppl and the GB price for June falls to 23.23ppl.

• For more information on UK, GB and Northern Ireland prices click here.

Farmgate Prices

Sources: Defra, DARD & DairyCo

Average Yearly Farmgate Prices

Annual data shows that the UK farmgate price has fallen by 2.20ppl (8.5%) to 23.71ppl in 2009.  In GB, there was a 2.04ppl (7.7%) fall from the 2008 average, to 24.39ppl in 2009.  The average NI price stood at 22.92ppl in 2008, there was 3.46ppl (15.1%) fall in the average price in 2009, which equalled 19.46ppl.  

Note: In Northern Ireland a larger proportion of milk goes into commodity markets and therefore the NI price tends to reflect the rises and falls in the commodity markets more than GB. For more information on commodity prices click here.

Sources: Defra, DARD & DairyCo

The UK average milk producer price is collected by Defra. Milk purchasers provide details of how much they have paid farmers for milk (excluding any delivery and administration charges) and the volume of milk they have purchased. From these figures an average price per litre (which includes seasonality) can be derived. NI data is collected by DARD.