MPI rises to 11-month high point

A 0.83p/l increase in the Ulster Farmers’ Union milk price indicator (MPI) for NI brings the market forecasting mechanism to its highest value for close on 11 months.

The MPI tracks returns from key dairy commodities and translates the data into an equivalent milk price.

The latest increase puts the MPI on 35.04p/l, up from 34.21p/l in late November. The MPI has now recorded eight consecutive increases since mid-August to stand at its highest value since early February 2023.

The ongoing recovery in milk powder, butter and cheddar are mainly behind the rise in the MPI.

Factoring in transport and processor margins, the MPI points to a base price around 32p/l in early 2024.