Market Outlook and Statistics as 30ppl for June Milk quickly becomes an unexpected reality

In general the outlook is cautiously optimistic and those at the most responsive end of commodity market movements will receive over 30ppl for June deliveries.

Yew Tree Dairy have already notified producers on their ingredients contract that their June price will be over 30ppl based on standard manufacturing contract and in excess of 29ppl based on a standard liquid litre.

Meanwhile, Barbers Farmhouse Cheesemakers suppliers receive 31.08ppl on their over base litres (AMPE 33.08 minus 2ppl). So a farmer with a base of 100,000 litres for the month has 4% added and if he produces say 110,000 litres he receives 31.08ppl on the 6,000 litres above the 104%. On the 104,000 litres for May, June & July the Barbers price has been a constant 28.87 based on a manufacturing standard litre.

During May AHDB dairy calculated average UK butter prices increased by 11% (£520 tonne) to £5180.

Despite the fact the European Commission sold 42,000 tonnes of Intervention SMP at a knock down price it appears to have help boost the price for fresh SMP which in May increased by 14% (£165 tonne) to £1320.

Last but not least cream values increased by 13% (£270 tonne) to £2350 this increase is worth an extra 1.6ppl to a liquid processor.

Spot milk is trading circa 25p litre but most processors are close to capacity and unable to take much if any advantage from this price.