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The organic dairy market in Wales archive



November 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4
March 30.4 30.4
April 30.6
May 29.68
June 30.72
July 31.44
August 31.81
September 32.82
October 33.43

dairy nov



Oct 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4
March 30.4 30.4
April 30.6
May 29.68
June 30.72
July 31.44
August 31.81
September 32.82

dairy oct



July 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4
March 30.4 30.4
April 30.6
May 29.68
June 30.72
July 31.44


dairy august





June 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4
March 30.4 30.4
April 30.6
May 29.68



dairy june




May 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4
March 30.4 30.4

dairy may



April 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2
February 30.4

dairy data



March 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Average Milk Prices 2013
January 30.2

Dairy Data




February 2013 Market data from DairyCo



Average milk prices 2012
January 29.17
February 29.18
March 28.99
April 28.37
May 27.9
June 26.91
July27.15
August 27.12
September 27.84
October 29.18
November 29.86
December 30.13

Dairy Feb 2013



Market update by Richard Hampton OMSCo August 2012


Richard Hampton

Consumer demand for drinking milk continues to shrink, currently at a rate of around 7% per year. Retailer distribution is the key driver of this, with the weighted distribution down 5% in the supermarket trade since last year. Demand from the yogurt sector is relatively stable, as is the export market. Production has been extremely poor, in line with the conventional market, due to the weather. Overall it means a tightening of supply and demand as we head into the winter.



Market update by Huw Bowles OMSCo April 2012



All eyes in the organic dairy world are on the non-organic market at the moment. Global non-organic dairy commodity prices have been falling for a few months due to increases in supply in New Zealand, Australia and the US. These are impacting on UK spot prices with cream trading at half the level it was 12 months ago and some bulk non-organic milk selling for less than 20ppl delivered. Retailer and processor margins are under pressure so we have reached the point where further reductions in returns cannot be absorbed. Market commentators are suggesting it is a case of when and how much, rather than if as far as farmgate milk price reductions are concerned. Although some farmgate organic prices have fallen recently, we hope that we have managed to dislocate ourselves from non-organic price changes but need to recognise that this is a threat. It seems bizarre that non-organic production in New Zealand should have an impact on organic milk prices in Pembrokeshire, but this is an unfortunate consequence of the global village we now live in!!

DairyCo Milkbench+ report 2012
Published 16 January 2012, to read the full report click here
This report shows the findings of the first full analysis that DairyCo have carried out on Milkbench+ data. The report raises many issues, including just how difficult it can be to make a profit from milk production.

Kingshay Dairy Costings – Organic
Please click here to read more

Market update by Huw Bowles OMSCo March 2012



Another early spring has seen many organic cows out even earlier than last year which has resulted in volumes also increasing earlier than normal. With non-organic cereal prices rising, it is surprising that not all non-organic cows aren't out. The continued lack of rain, especially on the Welsh Borders, has many organic producers thinking that they may again be short of forage during the summer. The effects of last year's drought was one of the reasons given for a number of producers in Shropshire and Cheshire reverting to non-organic and a repeat this year will leave many grass based producers facing significant difficulties.

From a market point of view, where organic milk and dairy products are available, sales seem to be holding up well, but a lot of the reduction in sales has been caused by lines being taken out of smaller outlets. It is now very rare to see organic milk on sale in the garages and 'metro' type shops of the major retailers, whereas these were common three years ago. Given the reduction in offerings, organic sales are showing a fair degree of resilience and hopefully when people stop writing it off as a fad, we will have a solid base to start some modest sales growth.

DairyCo Milkbench+ report 2012
Published 16 January 2012, to read the full report click here
This report shows the findings of the first full analysis that DairyCo have carried out on Milkbench+ data. The report raises many issues, including just how difficult it can be to make a profit from milk production.

Kingshay Dairy Costings – Organic - Published 15 March 2012

Monthly resultsDecember 2011January 2012January 2011
Yield per cow in milk (litres/day)21.322.122.4
Butterfat(%)4.194.094.05
Protein (%)3.283.253.23
Milk Price (ppl)34.9034.6533.25
Concentrate use per litre (kg)0.310.290.32

Annual Rolling Averages

Annual rolling results showed that there was an increase of 168 litres per cow (2.5%) in the average yield for the 12 months to January, to a total of 6,864 litres per cow. Average butterfat levels have increased by 0.03 percentage points to 4.00%, whilst protein levels were down 0.01percentage points to 3.25%. The average milk price increased by 1.08ppl (3.5%) from the previous year to 31.96ppl in January 2012.

Rolling resultsJanuary 2012January 2011
Yield per cow (litres)6,8646,696
Butterfat (%)4.003.97
Protein3.253.26
Milk Price (ppl)31.9630.88
Concentrate use per litre (kg)0.250.26

Source: Kingshay


Market update by Huw Bowles OMSCo February 2012



With DairyCo reporting organic milk sales down 9% by volume in 2011, it is clear that many mainstream consumers are being led astray by the current cut-price offers on standard milk. Organic milk volumes had held up pretty well in the early stages of the recession and it appears that it is the discounting of non-organic milk rather than any dissatisfaction with organic which is causing the current reductions in sales. Nothing has changed in terms of the science and benefits for organic milk and there has been some recent positive coverage, including Countryfile and in the Daily Mail. Evidence has consistently shown that branded and direct sales have fared better than own-label products and with Yeo Valley rebranding being launched in March, hopefully this can provided some impetus to the whole organic dairy sector.

DairyCo Milkbench+ report 2012
Published 16 January 2012, to read the full report click here
This report shows the findings of the first full analysis that DairyCo have carried out on Milkbench+ data. The report raises many issues, including just how difficult it can be to make a profit from milk production.

Kingshay Dairy Costings – Organic - Published 24 January 2012

Monthly resultsOctober 2011November 2011November 2010
Yield per cow in milk (litres/day)20.420.220.7
Butterfat(%)4.074.124.13
Protein (%)3.353.333.32
Milk Price (ppl)33.4334.9832.62
Concentrate use per litre (kg)0.270.310.32

Annual Rolling Averages
Annual rolling results showed that there was an increase of 223 litres per cow (3.3%) in the average yield for the 12 months to November, to a total of 6,910 litres per cow. Average butterfat levels have increased by 0.03 percentage points to 3.98%, whilst protein levels were unchanged at 3.25%. The average milk price increased by 1.0ppl (3.3%) from the previous year to 31.72ppl in November 2011.

Rolling resultsNovember 2011November 2010
Yield per cow (litres)6,9106,687
Butterfat (%)3.983.95
Protein3.253.25
Milk Price (ppl)31.7230.72
Concentrate use per litre (kg)0.250.27

Source: Kingshay

The organic dairy market in Wales

Market update by Huw Bowles OMSCo January 2012



Retail sales of organic milk show no signs of reversing the current downward trend, with the latest Kantar figures showing an 8% decline versus the same period a year ago. In the past we have seen an increase in sales at this time of year on the back of healthy eating New Year resolutions and it is hoped that this can kick start some growth. The price premium is often given as a reason why organic sales are suffering but there are many examples of products which far outsell the organic offer and are similarly priced. Hi-Peak feeds are the latest to have highlighted this by showing that organic milk is often cheaper than Cravendale which sells nearly twice as much as all organic milk put together. This is also the case on other products where the Organic is compared to “Taste the Difference” or other non-budget lines. The key is to focus on value, in the true sense, rather than just price and with consumers paying more attention to this, perhaps they will conclude that paying more for an organic product is worthwhile, whereas branded or premium non-organic products don't offer that same value.

See also Kingshay Organic Dairy Costings, updated monthly
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Organic Centre Wales, IBERS, Gogerddan Campus
Aberystwyth University, Ceredigion, SY23 3EB
T:01970 622248   E: organic@aber.ac.uk
Funding bodies
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