Milk Link to increase prices
Published 6 September 2007

Milk Link has today announced that it is to increase prices by approximately 4.60ppl on all liquid and manufacturing contracts from 1 October 2007.  Liquid contracts will be increased on the base price, with manufacturing contracts increasing constituent payments up to 1.997ppl% on butter fat and 3.923ppl% for protein.

This would take the milk price paid for 'A' litres up to approximately 24ppl.  As a result the price for 'B' litres would be over 30ppl for October through to December.
'A' and 'B' pricing works by comparing actual production to a core volume.

All litres produced up to the core volume are paid for at the full price (A price); litres over this volume are paid for at a percentage of this price (B price).  In the peak months this percentage is generally less than 100% therefore extra litres are penalised, whereas in the trough months the percentage is generally greater than 100%, therefore extra litres are paid for at an increased price.