Straight prices driving concentrate prices higher

Published 18 July 18

Theoretical concentrate prices, based on how prices of the raw materials have moved, will now be published monthly on the AHDB dairy website. The aim is to improve transparency around price movements, give some indication of movement in concentrate prices, and inform forward planning by the industry.

Up to now, AHDB has used the prices quoted by Kingshay and Promar to give an indication of the average price of concentrates in the country. However, these prices can be 2-3 months out-of-date by the time they are available.

The new concentrate price is formulated by using a blend of wheat, barley, soyabean meal and rapeseed meal. Using the latest straight prices collected by AHDB cereals and oilseeds, we are able to estimate a concentrate price, using the movement in the straights market prices.  

The latest data suggests that concentrate prices would have risen in June and July off the back of rising prices for straights, particularly wheat. Rapeseed meal prices have been climbing since the start of the year, to reach a near 4-year high in mid-April with soyabean meal prices also rising during April. These price rises are expected to be filtering through into concentrate prices now.

It is important to note that the figures simply provide an indication of the direction and size of concentrate price movements, based on the historic relationship between straight prices and concentrate prices. They may not necessarily equate to actual price changes made by feed companies, as these will also be impacted by other factors.

Actual Vs Calculated Concentrates Graph

 Calculated concentrate price table