Milk price Armageddon on its way
Posted on: 10/01/23
This is the headline and comment today from www.milkprices.com
Milk price Armageddon this spring? Barring a miracle its coming. Our forward market indicators are now ringing alarm bells off the wall. For the majority, no surprise if milk price levels have to fall by 10ppl to 12ppl before the end of Q2 for some that may not establish the low
That’s another farmgate milk price prediction of under 40ppl.
It puts more meat on the bones of and earlier comments on this website/bulletin. In particular 24th November where Ian stated “The reality is its now heading for carnage”. In addition, there was the 11th November posting where he wrote “lets hope it (Farmgate milk prices) settle in the early 40p region”.
So grim are the forward curve numbers www.milkprices.com have stated that “it will be a minor miracle if their net UKMFE to the producer over the next 5 to 6 months doesn’t start with a 2 at the front”. They hope “to be proved wrong” but its looking like its coming towards us at a pace.
Note today the Nett UKMFE return to a producer stands at 34.85ppl
An email to Ian recently suggested with the recent stand on milk prices and/or small 1ppl to 1.5ppl farmgate milk price reductions he must surely feel he got it wrong. Not at all this is a dam about to burst and its time to buckle up for the mother of all Dairy price rollercoaster rides.
Don’t shoot the messengers this is very serious and will inevitably shrink this industry at speed in 2023.