Liquid milk retail prices increase
Milk Development Council Datum
www.mdcdatum.org.uk
Published 17th September 2007
The retail price of fresh milk has increased in all the major multiple retailers by the equivalent of around 8.4ppl (weighted average across all pack sizes) since the beginning of September.

Of the major retailers with direct supply relationships, Tesco has increased farmgate prices by 5.5ppl, to 27.5ppl. This increase was effective from 9 September, almost a month earlier than the promised price review.

Sainsbury’s has also increased its farmgate price by 5ppl from 1 October to around 27ppl but at the time of publication had not increased its retail prices. Asda’s milk is supplied by Arla and is paid for at a premium of 1ppl over the Arla price, which is set to rise to 25ppl from 1 October.

It is interesting to note that this increase in the retail price of milk is more than the recent announcements of increases in farmgate price to direct supply groups (around 5ppl).

As yet there has been no comment from the retailers as to whether this difference will be passed back to processors, retained in the retailer margin to cover cost increases or increased profits, or passed back to farmers at a later date.

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