Dairy market sinks to eight year low
"While we have been obsessing about the machinations of the GDT, the UK market returns have sunk to an eight year low."
The UK dairy market has fallen to an eight year low, according to an industry indicator.
Nick Holt-Martyn of The Dairy Group said: "While we have been obsessing about the machinations of the GDT, the UK market returns have sunk to an eight year low.
"The Market Price Equivalent has dropped to 24.3ppl, the lowest since May 2007. Previous lows were 26.9 ppl in April 2012 an 26.1 ppl in May 2009."
A comparison table of market returns from May 2007 with May 2015 reveals that liquid returns are unchanged, with butter and cheddar higher.
However, commodities are very much behind the returns of eight years ago. The Dairy Group says the significance of this is that commodities were less influential on domestic prices in 2007 compared to cheddar or liquid. Now, partly through GDT, global prices, and transparency in domestic returns, commodities are much more influential.
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