# What is behind the sharp drops in farmgate prices? | AHDB

> UK liquid milk processors cut farmgate prices and deferred payments after government restrictions shifted consumption from foodservice to retail. Some processors raised prices while others cut them. Smaller processors reliant on foodservice face cash-flow strain.

- Date: 2020-04-01 · published 2020-04-01T12:00:00.000Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/4161-what-is-behind-the-sharp-drops-in-farmgate-prices-ahdb
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Uneven demand shifts and cash-flow strain are pushing some UK farmgate milk prices lower, which squeezes producer margins.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2023-03-17 | [As commodity prices slide, dairies brace for collapsing farmgate milk prices](https://feedsoft.ai/events/36864-as-commodity-prices-slide-dairies-brace-for-collapsing-farmgate-milk-prices.md) | +0.6% | +3.4% |
| MILK | 2021-07-07 | [What does inflation mean for milk prices? - Dairy Producer](https://feedsoft.ai/events/46216-what-does-inflation-mean-for-milk-prices-dairy-producer.md) | +0.7% | -1.8% |
| MILK | 2020-03-27 | [Dairy industry sees sales skyrocket, prices tank - The Business Journal](https://feedsoft.ai/events/54274-dairy-industry-sees-sales-skyrocket-prices-tank-the-business-journal.md) | -12.1% | -18.7% |
| MILK | 2018-07-14 | [Dairy farms weather long stretch of low milk prices \| AP News](https://feedsoft.ai/events/64182-dairy-farms-weather-long-stretch-of-low-milk-prices-ap-news.md) | -0.6% | +5.4% |
| MILK | 2020-03-31 | [Milk-Price Drops to Cost Dairy Billions in Lost Revenue as Coronavirus Bites - NMPF](https://feedsoft.ai/events/4157-milk-price-drops-to-cost-dairy-billions-in-lost-revenue-as-coronavirus-bites.md) | -14.4% | -18.8% |

## Sources

- ahdb.org.uk: https://ahdb.org.uk/news/what-is-behind-the-sharp-drops-in-farmgate-prices

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.