Milk Link increases milk price and lifts quota restrictions

UK - Dairy commodity prices used to drag milk prices down, now they seem to be pushing values gradually upwards.
calendar icon 22 November 2006
clock icon 1 minute read

Milk Link has just announced it is increasing the price it pays for its members’ non-core milk output during the first five months of 2007.

It has also lifted quota restrictions on farmers, meaning they can increase output without fear of penalty.

The co-op said the rise should amount to 0.15p/litre for the average supplier and follows a recent 0.2p/litre increase on its liquid contracts, which was partially attributed to improvements in the cream market.

Milk Link operates an A + B system where producers are paid an ‘A’ price for an agreed number of litres. The price paid for ‘B’ litres supplied over this volume is adjusted depending on the time of year.

For example, B litres supplied in January were previously worth 95% of the A-litre price. However, under the new system they will be worth 105%.


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