Cream price under pressure but still historically high, says AHDB
Since the Christmas demand was covered, prices have been under pressure from signals of higher milk production (from UK and EU) and influenced by currency movements, AHDB said.
However, it is important to remember the recent movement of prices. Between April and November, the average cream price increased circa 150%, from £800/tonne to £1,990, the highest average price on record from the AHDB Dairy survey.
Taking into account 5-year average prices also puts the January 2017 price in perspective. The current £1,620/tonne cream price is still well ahead of the 5-year average.
Even some of the lower prices quoted over the month (low-mid £1,500s) are still above that level. ■