Market Snap Shot
Posted on: 28/08/20
The cream and spot markets continue to nudge slightly North, with Cream now trading at around £1.55 kg with spot milk rising to 30/31ppl.
A £1.55 kg cream price according to AHDB Dairy is worth 8.8ppl to a liquid processor assuming an average UK butterfat of 4.14% (current 12 month rolling average).
Note in April cream values were 90p kg worth only 5.1ppl to a liquid processor. So net gain in cream values is they are up 3.7ppl on these top and bottom figures but don’t assume all milk buyers get to keep this extra because several retailers have locked liquid processors into a price which means the retailer gets their grubby mitts on a chunk of the gains.
Most farmgate milk prices are now back to at least their pre Covid levels, but struggling to push on higher. The Eat Out Scheme has boosted demand and with schools returning, the next question is will that be a boost to dairy markets assuming school canteens return to normal?