Middle ground liquid processors under pressure as 1ppl farmgate price drop is announced

North Lakes Foods Ltd have informed their suppliers that from 1^st October their farmgate milk price will reduce from 50ppl to 49ppl which includes the bonus payment of 1ppl which the majority of farmers receive.

In October 2021 North Lakes liquid standard litre price was 29ppl (28ppl + 1ppl bonus) and in September 2022 (49ppl + 1ppl bonus).

 

In their business update to producers Freshways have stated their intention is to hold their September 50ppl liquid standard litre price for October.  Mullers 48ppl announcement (see above) will help this become reality but for sure it won’t be easy for Freshways to bridge a 2ppl price gap for long.

In their update Freshways, like the rest of the GB liquid industry, are waiting to see how demand pans out when the schools return and life returns to something like normal post the hot summer holiday period.

 

In this bulletin on the 12^th August Ian stated that in his opinion farmers receiving 48 to 50ppl on the 1^st September would be wise to consider this to be 12 O’clock (the top) with those lagging (like Muller) having to make a 1^st October catch up payment.  That is now looking like reality and it’s a positive if prices can hold at circa 48 to 49ppl on a liquid standard litre well into 2023.

Let’s hope this levelling off discourages farmers from pushing for more milk output.