Milk to feed price ratio (MFPR)
Updated 8 November 2019
The milk to feed price ratio (MFPR) shows the value of milk compared with the cost of purchased feed. Feed costs account for around 70% of variable costs. The MFPR gives an indication of inputs costs in relation to income. It is updated on a monthly basis
There are two ratios quoted – the calculated MFPR, which is based on feed prices and projected milk prices, and the actual MFPR, which are provided by Kingshay Dairy costings and Promar Milkminder.
- The actual MFPR is normally provided two to three months in arrears.
- The MFPR is an indicator only and not a replacement for analysis on the full costs of production.
- The ratio will increase if either farmgate milk prices increase or concentrate prices decrease.
- The ratio will vary greatly from farm-to-farm depending on milk price achieved and type of feed used. The ratio should only be used as a guide to the cost-revenue relationship in the country.
- The milk price used is the Defra farmgate average - visit the Projected farmgate milk prices page for more information
- The feed price used is for concentrate feed formulated by using a blend of wheat, barley, soyabean meal and rapeseed meal straight prices, as collected by AHDB Cereals and Oilseeds. An estimated cost is added on to account for the additional of mineral and other supplementation.