Robert Wiseman Dairies has given its dairy farmer suppliers a month’s notice of a 1.7 pence per litre (ppl) reduction in the farm-gate milk price, to take effect from 1 August.
The decision follows a collapse in the value of the cream in each litre of farm-gate milk over the last 12 months. From its peak, the commodity fell in value by the milk price equivalent of more than 5ppl.
Wiseman had hoped that the need for further adjustment to its milk price following a 2ppl reduction which took effect in June could be negated by a sustained and significant rally of commodity market values.
But whilst markets have improved from the lows of recent weeks, they remain at levels not seen since early 2010, when the average DEFRA milk price in the UK was 24.19ppl.
Wiseman’s standard litre price from August will be 24.73ppl.
Pete Nicholson, milk procurement director at Robert Wiseman Dairies said: “We know that this news will come as a major disappointment to Wiseman Milk Group members.
“We have done everything we can to minimise the reduction in our farm gate milk price but we must now reflect the substantially lower returns from the markets which we serve.”
Murray Goulburn cuts milk prices
Australia’s farmer-owned dairy company, Murray Goulburn Co-operative (MG), has released its opening milk price for the new season commencing 1 July 2012.
In a letter to its dairy farmer supplier-shareholders, MD Gary Helou said the opening farmgate price was $4.50 per kg milk solids which is 8.5% down on last year’s opening price of $4.92.
Source: Robert Wiseman Dairies
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