Forward Market Performance

FMP is AHDB’s market indicator which tracks the difference between current market prices and prices of the small amount of dairy product traded on futures contracts.  The table below indicates that the FMP calculates that the milk price trend turned upwards again as from August 2017, having stalled last month. Please note also that the price in ppl is my estimate, not that of AHDB.

So, the FMP price has risen yet again, and this indicates that milk prices will continue to be strong up to and beyond the New Year.  Markets for dairy fats are very buoyant, and indeed the demand for milk worldwide is strong.

The crucial issue to remember through all this good news is that the present high milk price will almost certainly not be here to stay.  Use this period to prepare your dairy business for the time when milk price next collapses.  Build in resilience.

Have you a plan to cope with future Milk price volatility?  If not, contact Charles Holt at charlesholt@fcgagric.com or your local FCG office, to explore your options with an independent view.

Posted in Business Management, Dairy & Forage, Lincoln.