Market stability in uncertain times

Monday, 30 December 2019

By Chris Gooderham

Despite Brexit uncertainty, exchange rate volatility, adverse weather and trade challenges, the value of milk in the UK has had its most stable period for more than a decade.

According to our milk market value (MMV) indicator*, the UK market has seen a range of prices of just 1.8ppl over the last 12 months, from 31.3ppl in January to 29.5ppl in August. The price is currently sitting at 30.4ppl, exactly in the middle of that 12 month range.

The price is only an indicator of market values, and within that we’ve seen relatively stable cheddar prices, falling butter prices offset by rising skimmed milk powder values.

chart, histogram

For one month back in January 2012 the MMV recorded a range of just 1.5ppl over the previous 12 months, but the prolonged period of stability we have seen since November 2018 has been unheard of since CAP reform fully kicked in, intervention prices were set at their current level and milk quotas were removed.

For information

*Milk equivalent values for our two market indicators (AMPE and MCVE)

Image of staff member Chris Gooderham

Chris Gooderham

Head of Market Specialists - Dairy & Livestock

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