Projected AHDB Farmgate Milk Prices – Charles Holt (Lincoln)

The milk price rising theme continues, with the projected MMV figure (as published by AHDB) indicating that the forward prices paid for butter, SMP and cheese have all increased again.  MMV is an indicative figure that looks forward at the potential for milk price movements, three months ahead.

MMV rose to 36.6ppl for October, and then jumped to 39.8ppl for November.  The December price leapt forward again, to 41.73ppl.  These figures indicate the future price for three months hence, so the December figure is suggesting that milk price will rise by the difference (41.73 – 39.8 = 1.93ppl in March.  The suggested price rise for January was 3.2ppl, which may have been a bit high, but it certainly has risen substantially.  The important point is that the measure is suggesting further significant price rises are foreseen, into the spring.

It is a useful figure to keep an eye on, as it can predict price rises for you – and price falls.  Because it is essential to remember that what goes up, can also come down.

Contact Charles at charlesholt@fcgagric.com or your local FCG Office, for an independent assessment to see how current price inflation will affect your business and how best placed you are to cope with the fast-changing marketplace and commodity prices.