New Standard Litre For Milk Price League Table
UK - DairyCo (the levy board) is introducing a new standard litre for its milk price league table to provide a more refined price and make comparison between contracts fairer.
10 November 2010
1 minute read
The new standard litre is based on monthly figures for the compositional and hygiene quality, rather than on annual figures, which will make the prices a closer match to the actual prices that dairy farmers receive. Also, the new litre measure is based on a 1m litre producer (against 800,000 litres previously) in recognition that farms have grown in size in the last few years and that farmers producing more than 1 million litres a year now account for more than half of the total UK milk production.
Because there have been changes in national trends, these parameters are based on the national average production figures for 2007/08, 2008/09 and 2009/10 instead of the 2004/05 and 2005/06 milk year that was previously used.
According to Arnaud Haye, DairyCo senior analyst; “League tables are based on theoretical standard litres and should therefore be treated with caution. With milk contracts having very different requirements, what will pay a good return to one farmer will not necessarily be adequate to another. I would therefore strongly encourage farmers to use DairyCo’s Interactive Milk Price Calculator. This allows farmers to input their own data in order to find out which contracts are best suited to their business.”
The Calculator is available through the website, www.dairyco.org.uk/.
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