# Milk price differentials reveal variations in margin pressure | AHDB

> An AHDB analysis finds the gap between the highest and lowest milk prices paid to UK farmers has widened above 4 pence per liter, hurting margins for farmers supplying fresh and manufacturing contracts. The milk-to-feed-price ratio for those groups has been in the contraction zone, though recent milk price increases are being announced.

- Date: 2021-06-01 · published 2021-06-01T12:00:00.000Z
- Category: market · region UK · magnitude low
- Page: https://feedsoft.ai/events/46584-milk-price-differentials-reveal-variations-in-margin-pressure-ahdb
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Squeezed farm margins below the 1.15 milk-to-feed ratio threshold could eventually cut milk output, a modestly supportive factor for dairy prices.

## Read by commodity

- MILK: neutral

## Sources

- ahdb.org.uk: http://www.ahdb.org.uk/news/milk-price-differentials-reveal-variations-in-margin-pressure

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