Increases in farmgate prices which properly reflect rises in wholesale prices for dairy produce are now long overdue, FUW milk committee chairman Eifion Huws claimed today.
Figures published by DairyCo last week revealed the wholesale prices of both butter and bulk cream rose by almost 70% in the 12 months to May 2010 while skimmed milk powder and mild cheddar rose by 30% and 12% respectively during the same period.
“In just the last month, the price of butter has increased by £400 per tonne and both mild cheddar and bulk cream have risen by £150 per tonne,” added Mr Huws.
According to DairyCo, UK commodity prices have benefited from a rapid rise in European price levels, despite a slight rise in the value of Sterling against the Euro over the past month and butter prices are now are now £100 higher than the record price of £3,300/tonne seen in 2007.
Bulk has also benefited from rising export and domestic prices due to limited availability and strong Continental demand.
“It is high time that the primary producer started seeing some of this money being passed back in order to engender industry confidence,” said Mr Huws. “Welsh Assembly Government figures suggest a fall in dairy farm incomes of 11% over the past year, so we are really looking to the dairy processors to make up for this fall.
