Currency shift gives some support to Sterling prices

Published 24 February 16

The weakening of the pound against the Euro is providing some support for the Sterling price the UK receives for dairy commodities sold to Europe. The price for SMP sold into intervention, for example, now converts to £1,317/tonne, around £125 more than it was three months ago. This equates to a 1.2ppl uplift in the milk price equivalent.

Overall, the pound’s value has now dropped by nearly 10% against the Euro, since reaching a peak last November. The fall has reportedly been driven by uncertainty over whether the UK will remain in the European Union.