World milk and feed prices

Combined IFCN world milk price indicator: weighted average of 3 IFCN world milk price indicators: 1. SMP & butter (35%), 2. Cheese & whey (45%), 3. WMP (20%)

Latest update: 10.03.2015

Milk : feed price ratio

Data Table: World feed price in US-$ / 100 kg

  Jan
 Feb  Mar Apr
 May  Jun Jul
 Aug  Sept Oct  Nov  Dec
 2006  13.2  13.4  13.1 13.3
 13.5  13.6  13.6  13.3  13.7  15.8  17.9  17.4
 2007  18.2  19.7  19.1  17.3  17.8  19.0  17.9  18.1  19.9  20.5  21.4  23.2
 2008  25.7  27.3  27.8  28.5  28.1  33.2  32.3  28.1  27.3  21.5  20.3  19.9
 2009  22.3  21.0  21.0  22.3  24.9 25.8
 22.2  22.6  20.8  21.6  22.1  21.9
 2010  21.5  20.4  19.9  20.3 20.6
 20.1  21.5  22.5  24.4  27.1  27.8  29.2
 2011  30.9  32.8  32.1  34.0  33.2  33.5  32.7  33.5  32.2 29.7
 29.1 27.7
 2012  29.5  30.5  31.8  32.4  32.6  32.6  39.9  40.8  39.2  38.1  37.2  36.3
 2013  34.9  35.2 35.7
 33.0  35.0 35.9
35.4
30.6
 29.2 27.9
27.8
 28.7
 2014  28.1
 29.6  30.8  31.6  31.5  29.8  26.3  25.8  23.7  22.8  25.2  25.0
 2015  23.6  23.4                    

Method explanation

World milk and feed prices


IFCN world feed price indicator:

The IFCN world feed price indicator represents the world market price level for feed. It is based on the prices for soybean meal and corn, originating from their shares in a simplified compound feed ration.


Milk : feed price ratio:

The milk : feed price ratio is defined as milk price divided by the price of purchased feed. In a simplified form it shows how much feed (kg concentrates) a farmer can buy after selling one kg of milk. A milk : feed price ratio >1.5 is considered favourable, in this case high yield / high input systems can be used. In simple terms, the higher the ratio is, the more economical it is to use concentrates. In extensive feeding systems, it represents a theoretical figure which indicates how advantageous the input of compound feed would be, if it were used.


Combined IFCN world milk price indicator:

The Combined IFCN world milk price indicator illustrates the world market price level for milk. It represents the milk price a milk processor could theoretically pay to its farmers, if it was selling its products on the world spot market and producing at standardised costs. A wide range between IFCN world milk price indicators indicates economic stress for specialised dairies, if their main product is trading at the lower bound of the range. It is based on the weighted average of 3 IFCN world milk price indicators: 1. SMP & butter (35%), 2. Cheese & whey (45%), 3. WMP (20%), based on shares of the related commodities traded on the world market.


The arrow beneath the feed price on the right bar indicates the latest trend from the previous month to date (e.g. green arrow: up from last month).


Specifications:

IFCN world feed price indicator:

Soybean meal: >=48% protein, Chicago future first contract forward

Corn: US No. 2 Yellow, FOB US Gulf

Calculation: IFCN feed price indicator = 30% soybean meal price + 70% corn price


Milk : feed price ratio: Combined IFCN world milk price indicator / IFCN world feed price indicator.


Combined IFCN world milk price indicator:

Calculation: 35% IFCN world milk price indicator (SMP & butter) + 45% IFCN world milk price indicator (cheese & whey) + 20% IFCN world milk price indicator (WMP).


IFCN world milk price indicator (SMP & butter):

SMP: 1.25% fat, >=34% protein (non-fat dry basis)

Butter: 82% fat

Calculation: (butter price - processing costs)/technical coefficient for butter + (SMP price - processing costs)/technical coefficient for SMP.


IFCN world milk price indicator (Cheese & whey):

Cheese: Cheddar cheese, 39% maximum moisture

Whey powder prices: Sweet whey powder, food quality, bagged

Calculation: (cheese price - processing costs)/technical coefficient for cheese + (whey price - processing costs)/technical coefficient for whey.


IFCN world milk price indicator (WMP):

WMP: 26% butterfat

Calculation: (WMP price - processing costs)/technical coefficient for WMP.


Sources:

Prices for SMP, butter, cheese, WMP: USDA (export FOB port for Oceania).

Price for whey: ZMP, since May 2009 Süddeutsche Butter - und Käsebörse eV, Kempten (Germany, FOB ex-works).

Prices for soybean meal and corn: International Monetary Fund.

Exchange rates: Oanda.


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