The Dairy Market Outlook

Posted on: 05/03/21

The short and medium term outlook is now more positive for all processors and whilst further price reductions from milk brokers and some middle ground liquid processers cannot completely be ruled out, any who do announce further cuts must surely be challenged as going against the facts and general direction, especially any who are brave enough to suggest any April farmgate price adjustments. 

The direction of travel is for gradually firming prices, alongside a positive market outlook as well as the fact GB deliveries are now running below AHDB’s forecast. 

Wholesale prices are heading north and both AMPE and MCVE have recorded gains (see table at the top of this bulletin). 
February MCVE is up 0.4ppl to 32.47ppl and AMPE up 0.75ppl to 30.85ppl. 

As one middle ground processor commented to Ian today the “prospects are looking good, that’s until something upsets the liquid dairies and that’s usually each other with them scrapping for volume sales”. That is a very simplistic yet accurate summary of their track record.