AMPE & MCVE

Published 21 December 17

Actual Milk Price Equivalent (AMPE*) & Milk for Cheese Value Equivalent (MCVE*)

AHDB Dairy publish the market indicators for the dairy sector to provide broad, general estimates of market returns. The value of market indicators is as a basis for identifying trends and to use them for more precise purposes goes beyond the limits of their scope and accuracy.

  • Prices for butter and SMP both fell on UK spot markets in December by 11% and 3% respectively. The impact of these changes reduced AMPE by 2.9ppl (10%) to 26.4ppl.
  • Mild cheddar prices decreased by £265/tonne on average from November values. Whey butter prices decreased by 12% while whey powder increased slightly, by 2%. This resulted in MCVE falling 9% in December.

(ppl)

December 2017

1 Month Before

12 Months previously

AMPE

26.4

29.2

31.0

MCVE

31.9

34.9

33.5

Note: ppl change and percentage difference may differ due to rounding

AMPE.MCVE

 

*AMPE and MCVE calculations do not include the cost of transport of milk to the dairy. According to a 2014 survey of members of Dairy UK, the range of transport costs that can be encountered in the UK dairy industry are from 0.9ppl to 4.8ppl. The lower limit typically applies to purchasers with compact milk fields with larger farmers, while purchasers with geographically dispersed milk fields and smaller, less accessible farmers pay up to 2.4ppl on average. For some individual collection routes that involve reloading costs, transport costs can be as high as 4.8ppl.

For more information on how these market indicators were created, please click on the links on the right hand side.