Search our website enhanced by Google.
AMPE and MCVE updated to reflect latest costs in Q1 2024
Wednesday, 24 July 2024
Processing costs for dairy products eased in the first quarter of 2024, thereby increasing the value of AMPE and MCVE. These changes will be updated in our next publication on 25 July.
In Q1 2024, electricity and gas costs were down on the previous quarter, declining by 0.7% and 18.3% respectively. However, overall inflation (as measured by the Consumer Price Index) increased by 0.5% in Q1 compared to the previous quarter. Looking at the comparison with the same quarter in 2023, electricity and gas has declined by 5.9% and 19.1% respectively, while overall inflation rose by 3.9% year-on-year.
The net impact of the latest quarterly cost declines is for the average processing costs within both AMPE and MCVE to edge slightly down versus Q4 2023. AMPE costs are now 0.40ppl lower than the previous quarter and MCVE costs are on an average 0.41ppl lower.
The fall in energy costs continue to be partially offset by an increase in overall inflation. Energy costs declined at the beginning of the year, however they remain at historically high levels. When compared to average processing costs in Q1 2023, AMPE costs have declined by 0.41ppl and MCVE costs have eased by 0.36ppl in Q1 2024.
Please note that this latest update only reflects cost inflation to March 2024, including data revisions. Labour costs have been carried over from Q4 2023 due to delayed data publication from ONS. The next update will be in October 2024 following the ONS release of the 2024 Q2 cost indexes. A breakdown of the latest costs is given below:
The new costs include changes in:
- Energy costs based on the movement in the average prices of gas and electricity purchased by the manufacturing industry in GB as quoted by BEIS, up to Q1 2024.
- Labour costs carried over from Q4, based on the movement in the unit labour cost for the whole economy as quoted by ONS – due to a delayed data release Q1 2024 data was not available at the time of this publication.
- Other costs based on the movement in inflation (CPI)from the 2020 update to Q1 2024.
For further changes and to see how costs impact your own business, we offer an online spreadsheet that allows you to enter bespoke costs and milk quality into the calculations. This will then calculate unique indicators based on your own circumstances.
Sign up to receive the latest information from AHDB.
While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.
All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk © Agriculture and Horticulture Development Board. All rights reserved.