Milk to feed price ratio

Published 16 November 18

The milk to feed price ratio (MFPR) gives an indication of the relationship between milk income and feed costs. It shows the value of milk compared with the cost of purchased feed. A higher ratio indicates better affordability of purchased feed.

Actual costs and prices to calculate the MFPR are normally 2-3 months out of date. AHDB calculates a theoretical MFPR based on projected farmgate price movements and calculated concentrate prices. Therefore there are two ratios quoted, one is calculated from theoretical analysis, and one is based on the actual latest quoted numbers.

Calculated MFPR

050_mtfp _ratio _table _fig1

051_mtfp _ratio _graph

Actual MFPR

The table below gives the latest MFPR based on actual quoted concentrate prices from Kingshay and Promar, and the latest official average farmgate milk price quoted by Defra.

Note: numbers may not sum exactly due to rounding

050_mtfp _ratio _table _fig2

052_mtfp _ratio _graph _act

Notes:

The MFPR is an indicator only and not a replacement for analysis on the full costs of production.

The ratio will increase if either farmgate milk prices increase or concentrate prices decrease.

The ratio will vary greatly from farm-to-farm depending on milk price achieved and type of feed used. The ratio should only be used as a guide to the cost-revenue relationship in the country. For a more detailed indication of production costs click here.

The milk price used is the Defra farmgate average for GB excluding retrospective bonuses and the GB predicted farmgate excluding retrospective bonuses (click here)

The feed price used is for concentrate feed (click here) formulated by using a blend of wheat, barley, soyabean meal and rapeseed meal straight prices, as collected by AHDB Cereals and Oilseeds. An estimated cost is added on to account for the additional of mineral and other supplementation.

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