MFPR increases despite rising feed costs

Published 22 August 18

The latest figures for the calculated Milk to Feed Price Ratio* (MFRP) show that the ratio continues to increase into August. Currently at 1.23, the measure has increased by 0.02 compared to July levels. This is despite the calculated concentrate prices moving up by £4/tonne on the month to £235/tonne. The rise has been fuelled by escalating cereal prices, with feed wheat and feed barley (ex-farm) increasing by £18/tonne and £23/tonne month-on-month respectively.

GB average farmgate prices are also expected to rise in August off the back of market price increases three months ago. Projected farmgate prices for August are at 28.9ppl, a near penny increase on July levels. Since the ratio is continuing to moving upwards, this suggests that the increase in farmgate prices are only just compensating for the rising feed costs.

Despite the rise, the MFPR continues to track below the 5-year average. When the MFPR sits below the long-term average, milk yields have historically been held back somewhat.

Calculated MFPR

*AHDB calculates a theoretical MFPR based on projected farmgate price movements and calculated concentrate prices