Chairman’s Update
As we progress through 2024, two further milk price increases have been recorded for both conventional and organic since September 2024.
| Conventional | Organic | |
| September | +1.25ppl – 40.25ppl | +1.25ppl – 53.75ppl |
| October | +1ppl – 41.25ppl | +1ppl – 54.75ppl |
| November | +1ppl – 42.25ppl | +1ppl – 55.75ppl |
During the year to date, there have been 6 milk price increases for Müller Direct conventional farms, taking the price from 36.5ppl to 42.25ppl. The organic price has risen for 8 consecutive months by a total of 8.25ppl and for November 2024 is 55.75ppl.
Milk prices have increased during 2024 initially due to milk production being suppressed as a result of the cold wet spring that we all encountered. Reduced production led to rising commodity prices, particularly for cream and butter. To put this into context, the cream price for Feb 2024 was £1,996/t and for September 2024 was £3,147/tonne. The graph below shows the increase in prices for cream and butter in 2024.
Milk production for Müller conventional farms (aligned and Müller Direct) remain strong. This has been demonstrated by the higher than forecast percentage of milk on the ingredients contract. As a direct result of rising butter prices, the Müller balancing price has also increased significantly, and for September 2024 is confirmed at 40.68ppl. The forecast for the ingredients contract for the remainder of 2024 is shown in the table below.
| Forecast % of Ingredients | Provisional Balancing Price | |
| October | 5.33% | 39.31ppl |
| November | 5.12% | 37.47ppl |
| December | 10.03% | 36.66ppl |
Although commodity prices have been rising until recently, the UK milk futures equivalent (UKMFE) have recently taken a significant downturn. On this basis, the Müller balancing price for November and December 2024 are currently forecast at 37.47ppl and 36.66ppl respectively.
The objective of the MMG Board will be to ensure all members achieve a milk price that is sufficient to ensure a sustainable future. The long-term milk price will need to cover all trading costs together with the cost of complying with all environmental standards. The MMG Board will be working with Müller to encourage all retailers and customers to fully endorse a sustainable milk price going forward.
Please follow the link below for the full version of the October 2024 Newsletter