A survey of 100 dairy herds shows the average milk producer needs a price of 18.5p a litre just to stand still.
The study was carried out in the south west by Tenon Rural Services.
Spokesman Mike Butler said: "This shows that the current price of around 16p is unsustainable.
"Even the most efficient producers will need a price in the region of 18p to 19p a litre to cover even the most modest business development."
tomato cut
Retail prices for canned tomatoes haven risen following news that the contracts were being reduced by volume 40%.
Prices have moved up by 4p to 19p for peeled plum and 23p for chopped.
With price negotiations on new pack contracts yet to be finalised, consumers will face further increases.
The developments will allow brands to re-establish themselves as the level of supply does not allow for EDLP strategies on tertiary products.
Hamburg brokers are likely to challenge the stance taken by the Italian industry but UK importers are more pragmatic.
cheese down
Cheese production in July was down for the third month running, according to DEFRA figures. In the three-month period, the total drop in cheese production amounted to 5,000 tonnes and follows a record 16-month run of rising production.
Cheese producers, particularly Cheddar, have introduced the cuts to curb rising stock levels which had brought mild prices down by £600 to £1,700 per tonne.
However, it may take six months for the the cutbacks to reduce stock levels. Current levels for mild Cheddar have shown some recovery to around £1,800 per tonne. But Mature cheese supplies are still plentiful and will take longer to see any benefits. In the meantime, imports of Cheddar have continued to drop.
tuna build up
An easing of world tuna prices has caused some packers to increase production levels to build up stocks for promotional activity.
The lower levels were not reflected in all the production areas, so fob prices remain unchanged. If anything, the slight drop reminded traders that tuna is still a commodity business. For months, the effect of the tuna packers' alliance has held prices steady to the extent that it was referred to as a "boring" market. That's a major change from two years ago. But continuing promotional activity, including the now famous buy-four-get-four-free, continue to stimulate a healthy customer demand.
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The study was carried out in the south west by Tenon Rural Services.
Spokesman Mike Butler said: "This shows that the current price of around 16p is unsustainable.
"Even the most efficient producers will need a price in the region of 18p to 19p a litre to cover even the most modest business development."
tomato cut
Retail prices for canned tomatoes haven risen following news that the contracts were being reduced by volume 40%.
Prices have moved up by 4p to 19p for peeled plum and 23p for chopped.
With price negotiations on new pack contracts yet to be finalised, consumers will face further increases.
The developments will allow brands to re-establish themselves as the level of supply does not allow for EDLP strategies on tertiary products.
Hamburg brokers are likely to challenge the stance taken by the Italian industry but UK importers are more pragmatic.
cheese down
Cheese production in July was down for the third month running, according to DEFRA figures. In the three-month period, the total drop in cheese production amounted to 5,000 tonnes and follows a record 16-month run of rising production.
Cheese producers, particularly Cheddar, have introduced the cuts to curb rising stock levels which had brought mild prices down by £600 to £1,700 per tonne.
However, it may take six months for the the cutbacks to reduce stock levels. Current levels for mild Cheddar have shown some recovery to around £1,800 per tonne. But Mature cheese supplies are still plentiful and will take longer to see any benefits. In the meantime, imports of Cheddar have continued to drop.
tuna build up
An easing of world tuna prices has caused some packers to increase production levels to build up stocks for promotional activity.
The lower levels were not reflected in all the production areas, so fob prices remain unchanged. If anything, the slight drop reminded traders that tuna is still a commodity business. For months, the effect of the tuna packers' alliance has held prices steady to the extent that it was referred to as a "boring" market. That's a major change from two years ago. But continuing promotional activity, including the now famous buy-four-get-four-free, continue to stimulate a healthy customer demand.
{{MARKET EDGE }}
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