Blog: Why market intelligence matters

Chris Gooderham, AHDB Head of Market Specialists talks about why dairy farmers should care about the market intelligence work we do at AHDB.  After all, surely you don’t need to know what’s happening to butter prices in New Zealand to milk cows?

At its heart, market information is about the fairness, or reasonableness, of prices. How do you know if your milk price is fair? What about calf or cow prices? And how do you know that you’re not paying too much for your feed or fertiliser?

That’s where the market information comes in. It’s your way of checking how your individual prices compare with the general market.

So, what information can help? Our milk price calculator lets you check your price against what’s available from other registered milk buyers. Simply add your data to see what they would pay for the same quality of milk.

You can also get an indication of what milk is worth on the market if it turned into butter and skimmed milk powder (AMPE) or mild cheddar and whey powder (MCVE).

These indicators also show which way farmgate prices might move in the future. Our analysis shows this happens two to three months after butter, skimmed milk powder and cheddar prices change.

As well as the here and now, market information is also about looking forward. What might happen to feed costs or milk prices? This knowledge can help indicate if a difficult period is on the horizon, or if there will be an opportunity to bolster your revenues or savings.

To keep tabs on markets, we regularly monitor both supply and demand.  Our Milk Forecasting Forum pulls together insights from experts around the country to help shape our production forecast, while our Consumer Insight team keep an eye on changes to consumer behaviour and demand.

Regular Horizon reports keep you abreast of  developments in policy and trade, and our Agri-market outlook provides a view on where markets might be heading.. These reports give you some insight into what may affect your business in the months and years ahead, and can help you plan, prepare and budget. 

Above all, whatever information you’re using, make sure it’s from a trustworthy source. We don’t sell anything, so you can confident that there’s no bias in what we publish.

If you value independent, unbiased and robust data, please register as part of Shape the Future to have your say on how your levy is invested.