In June, 41 million litres of milk were sold by United Dairy Farmers (UDF) at its auction for delivery in July. The average price achieved was 26.21ppl, an increase of 1.93ppl on last month (for 44 million litres) and 0.21ppl more than prices in June 2007 (for 43 million litres). The volume sold at the auction was less than in June auctions in recent years'.

The average price for one month contracts was 25.86ppl for 2 million litres, 1.58ppl more than in May 2008 and 0.80ppl more than last year. With lower than usual volumes of milk available at a time when milk supplies are reducing seasonally, the price reflected competition for supplies.

The average price achieved for 39 million litres sold under three month contracts was 26.22ppl, 1.94ppl more than in May 2008 and 0.12ppl more than lastyear. A modest uplift in prices usually occurs between the May and June auctions partly because the contract period covers the period July to September when milk supply availability is reducing. But the level of prices is also an indication of strong domestic markets for UDF. The current weakness of Sterling is also helping the export markets as products become more competitive on the world market.

UK SPOT MILK PRICES
1 month Contracts
(PENCE PER LITRE)	June-08 for July-08	1 month before	12 months before
United Dairy Farmers	25.86	24.28	25.06
3 month Contracts
(PENCE PER LITRE)	June-08 for July-08	1 month before	12 months before
United Dairy Farmers	26.22	24.28	26.10