IFCN milk price indicator
General:
The IFCN milk price indicator* represents the world market price level for milk. It is based on export prices for SMP and butter FOB port for Oceania.
The arrow beneath the price indicates the direction of change from the previous month to date (e.g. green arrow: up from last month).
Price developments:
In US-$ terms:
Since October 2011, the IFCN milk price indicator is relatively stable at around 43 US-$/100 kg, only increasing slightly from December to January (+0.8%). In contrast to last month, this development was driven by an increase in butter prices (+3.0%) while SMP prices lost slightly by -1.0%.
In € terms:
In Euro the IFCN milk price indicator increased again stronger by +3.0%, due to the exchange rate development. The Euro was losing another 2.3% towards the US-$. This is the fifth consecutive month of decreasing Euro-value against the US-$.
Update done:
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*Specifications:
SMP: 1.25% fat, >=34% protein (non-fat dry basis)
Butter: 82% fat
Calculation: IFCN milk price indicator = ((butter price - processing costs)/technical coefficient for butter + (SMP price - processing costs)/technical coefficient for SMP)
Sources: SMP and butter prices from USDA. Conversion of the price from US-Dollar to Euro is done with exchange rates from www.oanda.com.
