Accredited official statistics

United Kingdom milk prices and composition of milk - April statistics (published 28 May 2020)

Updated 25 February 2021

1. 1.1 Key messages

• This release shows the latest information on average farm-gate milk prices, volumes and the butterfat and protein content of UK produced milk.

• These April figures are the first to be entirely effected by the coronavirus pandemic. During this month, a number of companies have reported that they have struggled due to coronavirus related issues and have reduced price paid to farmers, some up to half what they paid the previous month. Conversely, other surveyed companies reported coronavirus to have little effect on their operations with no impact on price paid to farmers.

• The UK average farm-gate milk price for April 2020 is 27.60 pence per litre (ppl). This represents a 3.7% (1.07 ppl) decrease on March 2020 and a 2.2% decrease on the same month last year. (Figure 1.2).

• Butterfat is down 2.5% on last month at 4.13%. Compared to last year butterfat is 2.0% higher than April 2019. (Figures 1.3a).

• Protein is down 1.0% on last month at 3.33%. Compared to last year protein is 0.9% lower than April 2019. (Figures 1.3b).

• This month saw a smaller increase in milk volume compared to previous Aprils, this is likely due to reduced production from farmers who are responding to the current surplus of milk. April volumes are 1,318 million litres up 1.0% on March 2020 and 1.6% lower than April 2019. (Figure 1.4).

2. 1.2 United Kingdom farm-gate milk price (pence per litre)

3. 1.3 Average butterfat and protein content of United Kingdom produced milk

3.1 1.3a. Butterfat %

3.2 1.3b. Protein %

4. 1.4 United Kingdom wholesale milk production (million litres)

5. 1.5 Percentage change in key items: April 2020 compared to April 2019

6. 1.6 Trends

Figures 1.2 to 1.4 above show the values for the latest 12 months along with the maximum and minimum monthly values. There is a strong positive correlation between milk composition (butterfat and protein content) and milk price.

7. 1.7 Retrospective payments

Some companies make retrospective bonus payments. We do not reflect these payments in the monthly milk price figures. The annual average price for farm-gate milk in 2018, including retrospective payments, is 29.69 ppl, 0.43 ppl more than the annual average price without retrospective payments (29.26 ppl). In 2018 total retrospective payments were 2.8% higher than 2017 at £63.1 million.

A retrospective payment is when a company makes a payment to a farmer that is outside the normal contract price they receive and is generally paid on prior production, for example profit sharing.

8. 1.8 Revisions and estimates

UK Price data for March has changed to 28.67 ppl, while volumes increased to 1305 million litres.

England and Wales survey response in April was 90%. Northern Ireland data for March and April 2020 is an estimate.

8.1 1.9 National Statistics status

National Statistics status means that our statistics meet the highest standards of trustworthiness, quality and public value, and it is our responsibility to maintain compliance with these standards. The statistics last underwent a full assessment Assessment Report 271 Statistics on Agriculture against the Code of Practice for Statistics in 2014 Since the latest review by the Office for Statistics Regulation, we have continued to comply with the Code of Practice for Statistics and have enhanced data quality by reviewing methodologies and data sources. The next update of this monthly notice is at 09:30 on 25th June 2020.

Enquiries to: Julie Rumsey, Tel: +44 (0) 208 026 6306

email: julie.rumsey@defra.gov.uk

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