Arla has announced that its UK March manufacturing milk price is to increase by 0.90ppl to 30.9ppl, in line with increases for its European farmer suppliers ending a 14 month price hold.

Other liquid processors have decided that farmgate milk prices need to be cut particularly in respect of a dramatic fall in cream values which www.milkprices.com report as 10p KG in a week with the spot price now down to 25ppl.

Ian Potter Marketing Services has said if some of those buyers press ahead with planned farmgate price cuts taking their standard liquid litre prices below 25ppl its likely some farmers faced with no alternative milk purchaser will simply throw the towel in and hang their clusters up. Enough will be enough especially given the Arla member increase.

"If Arla were to open its recruitment gates the queue would be very long and anything but orderly”

However there is a 1ppl Milk Price increase by Pensworth Dairy (Liquid) Suppliers – from 1^st of March and 0.5ppl Milk Price increase for Meadow Foods Suppliers again from 1^st of March.

Crediton Dairy Suppliers have reduced their price by 1ppl from March 1st.

Wyke, Wensleydale, Belton Farm (Cheese),Lactalis, Grahams, Pattemores, Wells and South Caernarfon have held their milk price.

There are no signs the Coronavirus has turned the corner with Tuesday 18^th February recording 72,440 cases confirmed in China resulting in 1870 deaths and rising daily. Today, six days later, the number of cases in China has risen to 77,345 (+ 4,905) and 2593 deaths (+ 723).

The spread is exerting serious pressure on world dairy prices and despite Tuesday’s GDT result analysts anticipate pressure will come on cheese prices given the Chinese food service industry has seen numbers of Chinese consumers eating out collapse.

Last Tuesdays GDT Auction average fell for a second consecutive auction this time by 2.9% to average US $3176 tonne the lowest average price since January 2019. The results follow hot on the heels of a 4.7% fall only two weeks ago and this means WMP has seen more than 8% wiped off its value in less than a month.

In addition, there are reports that internal movement of refrigerated goods in China is slow as well as slow port unloading of refrigerated containers carrying imported dairy products.

Food chains including KFC and Pizza Hut have already closed down more than 30% of their Chinese outlets with total sales reported as down by 50% plus. 

Everyone is watching the figures is hoping that the virus will be short-lived but at the moment that’s certainly not the case.