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The Ulster Farmers’ Union milk price indicator (MPI) continues to rise on the back of improved returns within dairy commodity markets.
Published bi-monthly, the latest MPI is up 0.37p to 34.99p/l, making it the fifth successive increase in a row since late March when the indicator stood at 33.71p/l.
The recent upward trend in the MPI is mainly driven by improved butter prices within European markets, which increased to a 19-month high of €6,680/t at last week’s Dutch Dairy Board auction.
Butter is currently running close to €1,950 above its equivalent value last year and €1,000 above prices at the start of the year.
GDT auction
At last week’s New Zealand GDT auction, butter prices rose to a 26-month high going back to March 2022.
Skim (SMP) and whole milk powder (WMP) have also seen improved market sentiment in recent weeks, although not to the same extent as butter.
Britain
In Britain, market analysts with the Agriculture and Horticulture Development Board (AHDB) indicate that milk supplies have now passed the annual spring peak.
Milk intakes recorded by dairy processors peaked around 11 May and over the month, supplies are down 2.1% year on year.
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