Improved milk market value hints at higher farmgate prices post-flush

Published 30 April 18

On the back of firm demand for dairy products, driven in part by concerns over availability of milk supplies, the milk market value (MMV) increased in April. This is based on AMPE and MCVE, and helps to provide an indicator of where milk prices could go over the next few months.

Based on the typical impact that movements in the MMV have on farmgate prices in three months’ time, it would be expected there will be less downward pressure on farmgate prices in the coming months.

Projected Farmgate Price Changes Table

It is important to note that the figures simply provide an indication of the direction and size of expected milk price movements. Differences in the timing and size of price changes by individual milk buyers will arise due to conditions in the markets in which milk buyers operate, as well as the mechanism they use to set the milk price.