Market Indicators

Updated 24 June 2022

The Actual Milk Price Equivalent (AMPE), Milk for Cheese Value Equivalent (MCVE) and Milk Market Value (MMV) provide general estimates on market returns and the current market value of milk. They are based on UK wholesale price movements and can be used to identify general market price trends. They are updated on a monthly basis.

Overview

Note that increases in production costs after December 2021 have not yet been accounted for the AMPE and MCVE calculations.  The next adjustment to costs will occur at the end of June 2022 when quarterly data on manufacturing costs for Q1 2022 become available. 

Until these adjustments take place, AMPE and MCVE will over-estimate actual market returns.

  • AMPE (Actual Milk Price Equivalent) is an indicator of the factory gate value of a litre of milk used for butter and skimmed milk powder
  • MCVE (Milk for Cheese Value Equivalent) ais an indicator of the factory gate value of a litre of milk used for mild Cheddar and whey powder/butter.

  • MMV (Milk Market Value) is an indicator of the average market value of a litre of milk based on typical utilisation of milk in the UK.
    Movements in the MMV correlate strongly with changes in farmgate milk prices in 3 months’ time.





Additional information

The AMPE and MCVE calculations were revised from August 2020 to take into account higher milk compositional quality, higher production costs and varying lactose powder prices. A summary of the changes is available to download below.

The production costs for AMPE and MCVE were updated in April 2022 to take into consideration inflationary increases up to and including Q4 2021. These include costs related to labour and energy.

The next update on production costs will take place on publication of the ONS quarterly manufacturing cost indexes  for Q1 2022 (due for release 30 June 2022).

Please note that AMPE and MCVE 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.

AMPE and MCVE calculator

Projected farmgate milk price changes

Latest UK wholesale prices

MCVE calculations for selected EU countries

Summary of changes to dairy market indicators (2020)

Dairy market indicators review (2014)

Download dataset

Market indicators (AMPE, MCVE, MMV)

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