Milk market supplies continue to tighten as prices rise

Evidence of further tightening of supplies in the milk market emerged yesterday with major processor First Milk announcing a 5p per litre increase in its B milk price for all membership pools and a minimum 1p per litre rise on A prices.
By The Newsroom
Published 20th Oct 2016, 08:37 BST
Updated 25th Oct 2016, 19:14 BST

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NFU Scotland said farmers were still not receiving a sustainable price for their milk. Picture: John DevlinNFU Scotland said farmers were still not receiving a sustainable price for their milk. Picture: John Devlin
NFU Scotland said farmers were still not receiving a sustainable price for their milk. Picture: John Devlin

Reacting to the news, Graeme Kilpatrick, NFU Scotland’s milk committee chairman, commented that the 5p per litre increase to the B price was a strong indication that market returns for dairy products were improving.

However, he added that most farmers were selling the majority of their milk at an A price, which First Milk was increasing by a minimum of 1p per litre from November.

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He said this was proof that major milk processors based in Scotland were still failing to deliver a sustainable price back to farmers for their milk.

“AHDB Dairy figures released last week show milk production in Great Britain is now 8.2 per cent lower than at the same time last year and market commentators are warning of a cheese and butter shortage at the beginning of 2017,” Kilpatrick said.

“Milk buyers are failing to deliver a clear incentive to farmers to produce milk while being able to pay their winter bills.”

STIRLING BULL SALES

Charolais: Charolais bulls met a selective trade on the closing day of the Stirling Bull Sales yesterday. The breed average was back £1,411 with 83 bulls selling at a clearance rate of 63 per cent and an average of £5,674. Seven lots sold for five-figure sums and a top of 18,000 guineas was paid for the pre-sale show reserve overall champion from Hamish Goldie at South Bowerhouses, Ruthwell, Dumfries. Buyer was Esmor Evans for his Maerdy herd. Second best price of 16,000gns was paid to the O’Kane Bros’ Ovill herd in Co. Londonderry with Bill Bruce, Balmyle, Meigle winning this bidding battle. Bob Adam, Newhouse, Glamis paid 14,000gns for the junior champion from Major David Walter, Balthayock, Perth.

Blelack Charolais: After setting a new breed record earlier in the week for an Aberdeen Angus female, Neil and Graeme Massie, Blelack, Dinnet were again in big money with the dispersal of their entire Charolais herd. Demand was high for the 95 lots of cows, heifers, calves and bulls and peaked for one of the herd’s stock bulls, Oakchurch Igor, who was bought by Swalesmoor Farm, Halifax for 30,000gns. Trade for Blelack females reached a top of 8,000gns for a four-year-old cow bought by W & CS Robb, Chalmerston, Mauchline.

Doreen Cormack Stem Cell Fund: Farmers and friends dug deep in their pockets at the charity auction of donated lots held to raise funds for Doreen Cormack. A sum of £77,000 was raised towards her stem cell treatment. Further fund raising will take place at LiveScot.

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