The Market

With GB production affected by the cold weather and a serious shortage of both rain and grass wholesale prices on average have continued to firm.

Indeed, AHDB calculate National Production is now running 0.7% below its forecast output.

It’s a similar story across Europe with overall production down although accurate up to date statistics are slow to appear.

AMPE for April stands at 33.11ppl an increase of 9.78ppl (+40%) on 12 months ago.

Similarly, MCVE has nudged up to 33.45ppl.

There is no doubt that last week’s surprise increase from Arla has shook things up whether processors and/or retailers like it or not. Processors especially those in liquid will have to immediately push hard for customer and farmer price increases or be left wanting and under the spot light.

As one processor commented to Ian today “It’s time for some processors in the liquid market to grow some balls and sharpen their teeth”.

It’s almost unheard of that in the Spring flush farmgate prices increase and it’s a golden opportunity to get out there and get increases from customers.

Those processors who can’t or more likely won’t push for customer price increases should pack up and shut up shop.

Anyone sitting 4p or more behind Arla is letting its farmers down in this market! Arla have increased its member price by 3.21ppl in only 3 months whilst many others have sat back in stunned silence.