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Lactalis announces significant milk price increase for 6th successive month

Latest Increase means prices have risen by 8.5ppl since July.


Lactalis has once again introduced significant increases in the price it will pay farmers in its Scottish milk field. Not only is the company committed to doubling its previously announced November price increase from 1ppl to 2ppl, it is also delivering a further 2ppl from 1 December. This represents the 6th consecutive monthly increase and means that, from 1 December, milk prices will have broken back through the 25ppl mark.

This significant pricing commitment means Lactalis is now paying the industry leading price in the mainstream cheddar sector.

Matt Friel, Head of Milk Supply at Lactalis, said: “The first half of 2016 saw milk prices significantly and unsustainably depressed, with farmers in particular needing to see them recover fast.

“In support of the farming community and despite the challenging market, we predicted a strong recovery by the end of the year, and have worked hard with farmers and suppliers to deliver just that. We’ve successfully committed to increases for 6 consecutive months, equivalent to 8.5ppl increase since July. These latest increases mean that we’ll now be paying 23.0ppl from 1 November and 25.0ppl from 1 December. We now need to see the market continue to respond positively.”

Lactalis will continue its ongoing commitment to cost reduction programmes and efficiency savings. The cheddar market remains extremely competitive, however progress is being made with customers in the UK and abroad through exports, supported by its parent group.

Lactalis predicts that the market will continue to recover into 2017 as it responds to changes in supply and demand.

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