IMPE

Published 29 December 16

Intervention Milk Price Equivalent (IMPE*)

IMPE is only relevant when product is entering the EU intervention scheme. While prices remain above intervention levels, this page will not be regularly updated. 

AHDB Dairy publish market indicators for the dairy sector to provide broad, general estimates of market returns. The value of market indicators is as a basis for identifying trends and to use them for more precise purposes goes beyond the limits of their scope and accuracy.

IMPE* represents returns from selling butter and SMP into intervention (when it is open). 

Monthly values for December:

  • The intervention price for butter is set at €2,463.90/tonne, with product placed into intervention paid 90% of this value.
  • The intervention price for skim milk powder (SMP) is set at €1,698/tonne.
  • AMPE fell slightly in December to 31.0ppl on the back of a £100/tonne decrease in the butter price. The weaker poiund meant IMPE fell to 17.9ppl in December. It is now 13.1ppl below AMPE.
  • The gap in December last year was 1.5ppl.

(ppl)

December 2016

1 Month Before

12 Months previously

IMPE

17.9

18.5

14.5

AMPE

31.0

31.5

16.0

Note: ppl change and percentage difference may differ due to rounding

 IMPE and AMPE 2014
                                                                                             Source: AHDB Dairy

*IMPE calculations do not include the cost of transport of milk to the dairy. According to a 2014 survey of members of Dairy UK, the range of transport costs that can be encountered in the UK dairy industry are from 0.9ppl to 4.8ppl. The lower limit typically applies to purchasers with compact milk fields with larger farmers, while purchasers with geographically dispersed milk fields and smaller, less accessible farmers pay up to 2.4ppl on average. For some individual collection routes that involve reloading costs, transport costs can be as high as 4.8ppl.

For more information on how these market indicators were created, please click on the links on the right hand side.