Average UK farm gate milk prices have been steadily rising this summer. In May, the average at just under 16p per litre was 1.1p or 7.5% higher than a year earlier. The June average rose to 16.5p per litre, again about 7.5% higher than last year. The recently published average price for July shows a level of 17.83p per litre which was a rise of 1.4p per litre nearly 9% over last year.

July saw the first effects of the retail price initiative on liquid milk in which the major supermarkets increased the retail price by 2p per litre for the benefit of farmer prices. Farmers have expected the full 2p per litre to be reflected into their returns but not all milk retailers have yet adjusted their prices upwards.