Dairy commodity markets firm
UK dairy commodity markets remained firm during February, leading to a slight increase in the Actual Milk Price Equivalent (AMPE).
Butter and bulk cream values both increased by £50/t on the previous month, to £2,850/t and £1,300/t, respectively. According to a report by DairyCo, the weaker pound had helped to shore up commodity prices as supply and demand remained finely balanced.
“Available milk supply is important, with daily deliveries continuing to show a 4% decrease compared with the same time last year,” said the report. “Prices have also been helped by the start of the private storage aid season for butter, providing an alternative for butterfat. There is also an earlier Easter, which could keep demand firmer than would otherwise be expected at this time of year.”
Powder and cheese values remained unchanged on the month, resulting in an AMPE (based on a basket of commodity values) of 31.4p/litre – 0.2p up on the month and 3.4p higher than the same time last year.
However, average UK milk prices fell by 0.12p/litre in January, to 30p/litre – 1.03p above last year.
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