Christmas review of 2016

Published 22 December 16

As 2016 draws to an end we can finally look back on a downturn in prices that ended up lasting more than two years, and look forward with a sense of optimism for 2017.

Market prices have risen dramatically over the last year, with AMPE lifting from 16ppl at the start of 2016 to 31ppl by the end. On the whole, farmgate prices are rising, albeit slower than many require. A number of farmers will be assessing the impact of the period of low prices on their businesses.

Below is a view of the emotions a number will have felt passing through the market cycle. The last cycle appears to have lasted over four years, with many in the industry now showing signs of optimism as we come to the end of the year. One thing for sure, the market will continue to be cyclical. The only uncertainties are the size of the swings and the length of the cycles.

Market sentiment Dec16 

The AHDB Market Intelligence team take great pride in providing unbiased analysis, with the aim of helping farmers make better informed decisions on farm. This aids in responding to both opportunities and threats more quickly, driving improved resilience and greater efficiencies in the sector. While at times our comment and analysis may challenge existing thinking, our hope for 2017 is that the industry gains value from it and grows stronger as a result. 

We would like to send best wishes to you all for the festive period, and wish you a prosperous New Year. There will be no Dairy Market Weekly between Christmas and New Year. The next issue will be published on Thursday 5 January.

If you do have any queries at any point, please feel free to contact any of the team:

Chris Gooderham on 024 7647 8769, chris.gooderham@ahdb.org.uk

Patty Clayton on 024 7647 8701, patty.clayton@ahdb.org.uk

Luke Crossman on 024 7647 8722, luke.crossman@ahdb.org.uk

Kate Ward on 024 7647 8894, kate.ward@ahdb.org.uk