How stable is your milk price?

Published 21 September 16

The volatility of milk prices makes long-term planning difficult. While league tables give information on how contracts pay, relative to each other in a single month, they do not help assess how stable prices have been over time or longer term returns to farmers.

To help answer these questions, AHDB Dairy have compiled the following table which shows the average price paid on contracts1 over the past three years (Aug13–Jul16) and how they have performed versus the Defra 3-year average2. The range of prices3 paid over the past three years is also included to show the relative volatility of prices on various contracts.

Decisions on who to sell your milk to should not be based solely on price. Combining information on the longer term performance of contracts, alongside the price that can be achieved for your milk using the Milk Price Calculator, will help identify the best option for your farm business longer term.

How stable is your milk price table 21.09.2016