Price negotiations are a private commercial matter in which the Government cannot get involved, as long as competition rules are respected. However, we believe it is in the long-term interest of buyers to establish fair and sustainable arrangements for dealing with their suppliers.
We welcome the Competition Commission's announcement on 23 January2007 that, in taking forward its inquiry into the groceries market, it intends to look further at the impact of supermarket buyer power on primary producers in the dairy sectors.
[holding answer 17 May 2007]: DEFRA holds data on milk prices covering the United Kingdom (UK) as a whole, but not for counties within the UK.
The following table shows average monthly farm-gate prices for the UK calculated from separate monthly surveys on the value of milk. The surveys were conducted by DEFRA in England and Wales, the Scottish Executive Environment and Rural Affairs Department in Scotland, and the Department for Agriculture and Rural Development in Northern Ireland. The prices represent the average price per litre of milk received by producers each month, net of delivery charges. No deduction has been made for superlevy and no adjustment has been made for butterfat or protein content. The prices are shown both excluding and including any retrospective bonus payments made to date by milk purchasers.
Pence per litre Excluding bonus payments Including retrospective bonus payments 2003-04 2004-05 2005-061 2006-071 2003-04 2004-051 2005-061 2006-071 April 16.84 17.70 17.59 17.34 16.85 17.72 17.59 17.36 May 15.99 16.94 17.11 16.82 16.00 16.95 17.12 16.83 June 16.51 17.28 17.30 16.83 16.55 17.30 17.31 16.84 July 18.21 18.27 18.06 17.18 18.22 18.28 18.06 17.19 August 18.95 18.50 18.64 17.60 18.96 18.51 18.65 17.61 September 19.24 19.48 19.46 18.45 19.26 19.49 19.47 18.47 October 19.59 19.51 19.71 18.82 19.60 19.53 19.71 18.84 November 19.82 19.49 19.76 19.00 19.83 19.50 19.77 19.01 December 19.15 18.93 19.26 18.71 19.16 18.94 19.27 18.72 January 18.76 18.53 18.65 18.17 18.77 18.54 18.66 18.18 February 18.68 18.31 18.34 18.40 18.70 18.34 18.35 18.41 March 18.47 18.32 18.11 — 18.48 18.33 18.12 — Average 18.27 18.39 18.45 — 18.28 18.41 18.46 — 1 Data are provisional. Sources: DEFRA, SEERAD, DARD NI
The latest prices, excluding bonus payments, for February 2007 shows a 0.6p per litre increase from February 2006. As bonus payments are often not paid until the end of the financial year, prices including bonus payments in 2006-07 are not directly comparable with those in previous years.