UK – The Milk Development Council (MDC) is to carry out an investigation into why the UK milk price is the lowest in Europe, with prices continuing to fall.

The report is expected to focus on inefficiencies in the supply chain. Recent cuts in milk prices have been blamed on high milk production and falling demand.

Co-operative Milk Link slashed its price for May by 0.5p (0.008 euro) to 0.24 euro. This follows a 0.01 euro price cut in April. The co-op has blamed the cuts on high production, but claims that lower prices will be short lived.

UK industry figures believe that 0.25 euro per litre is sustainable milk price for efficient milk producers. Prices at auction in the UK are believed to have dipped as low as 0.15 euro per litre recently.

Processor Glanbia has also cut its milk price further. Glanbia collections from some areas of Scotland now only receive 0.24 euro per litre.

In April, the UK saw its highest milk production levels for 12 years. Production was up 10% on April 2001 to 42.43 million litres per day.