Most milk processors have kept their January raw milk prices at the same level as November and December, extending the hold period now to 3 months.
With a significant increase in on farm yields, at a time of year when there is normally a downturn, the expectation is that prices will need to fall as we move towards the spring flush.
Probably starting from as early as January when demand is traditionally low.
Farmgate prices are still at an all-time high, and the pressure the extra spring flush yields will bring, could see farmgate reduce by as much as 20% by the middle of Spring.
This would still leave farm gate as an average of £0.40 per litre, an increase of 48% on May 2021.
Prices continue to fall on mainland Europe and in Ireland, on the back of reducing demand, this external pressure is expected to put UK farmgate prices under further pressure as we move into 2023.