MULLER UK & Ireland Group has given dairy farmers who supply the business a month's notice that its standard farm-gate milk price from January 10, 2015 will reduce by 1.2 pence per litre (ppl).
The reduction to 25.9ppl results from a continuing imbalance between the supply of milk from farms and demand for dairy products both in the UK and around the world.
The UK processing sector is struggling to find added value markets for the extra 1.2bn litres of milk, equivalent to 43,000 tanker loads, likely to have been produced by farms in 2014. The increase in production is unprecedented in any single year.
Martin Armstrong, Head of Group Milk Supply for the Group said: "Returns from sales of cream and butter remain depressed due to high levels of supply at a time when demand is weak."
Market round-up
United Auctions sold 194 store heifers at Stirling on Wednesday to a top of 240.9p per kg and an average of 215.8p (-1.9p on the week), while 246 store, beef-bred bullocks peaked at 270.7p and levelled at 226.2p (-3.1p). Fifty-four store, B&W bullocks sold to 216.1p and averaged 149.2p (+3.1p), while 27 store bulls peaked at 217.3p and levelled at 207.3p).
In the rough ring 210 cows averaged 102.1p.
Messrs Craig Wilson Ltd had 2275 prime lambs forward in Newton Stewart on Wednesday that incorporated their annual Christmas show and sale. The red, white & blue rosette was awarded to A&J Wright, Pinmore Mains for their pen of Beltex that scaled 41kg each and sold for £158 per head (385p per kg), while the reserve went to a pen of 38kg Cheviot lambs shown by Peter Hunter Blair, Nether Cleugh, Dalry that fetched £100 (263.2p/kg). The overall sale average, including the show lambs, was 189.1p per kg (+13.1p).
There were also 218 cast sheep forward when ewes sold to £94 for Mules and £80.50 for Blackfaces.
The Cumberland and Dumfriesshire Farmers Mart had 24 prime cattle forward at their weekly sale in Dumfries on Wednesday when heifers sold to 217.5p and averaged 206p, while bullocks peaked at 227.5p and levelled at 221.8p. Six prime bulls sold to 211.5p and averaged 148.6p.
There were 125 OTM cattle presented in the rough ring when beef cows averaged 125.7p and dairy cows levelled at 88.4p.
The firm also sold 1208 prime lambs to a top of £95 per head and 217p per kg to average 188.9p (-1.7p).
The 402 cast sheep forward saw heavy ewes sell to £144 for Texels and average £87.80 (+£6.52), while light ewes peaked at £75 for Blackfaces and levelled at £65.45 (+£4.76).
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