World milk and feed prices from IFCN
Starting with the charts from December 2012, every month we will post the world milk and feed price indicators from the IFCN (International Farm Comparison Network) on the Milkproduction.com web site.
The IFCN has improved their world milk price indicator. The 'New combined IFCN world milk price indicator' is calculated as a weighted average of the three IFCN world milk price indicators for SMP and butter (35%), Cheese and whey (45%) and WMP (20%), based on their world dairy trade shares (commodity based). The 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 operating at standardise costs.
A wide range between the three IFCN world milk price indicators (see chart) indicate economic stress for specialised dairies, if their main product is trading at the lower bound of the range.
World feed price development will also be shown on the Milkproduction.com web site, as charts from IFCN, describing developments from 1996 to 2012, with monthly data since 2006.
Read more at the IFCN web site