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IFCN Combined World Milk Price Indicator

IFCN Combined World Milk Price Indicator: Based on the weighted average of 3 IFCN world milk price indicators: 1. SMP & butter (~32%), 2. Cheese & whey (~51%), 3. WMP (~17%), based on quarterly updated shares of the related commodities traded on the world market.

Latest update: 19.12.2019

Data table: IFCN World Milk Price Indicator in USD / 100 kg SCM*
(*Solid Corrected Milk: 4.0% fat, 3.3% protein)

Jan   Feb  Mar Apr   May  Jun Jul  Aug  Sept Oct  Nov  Dec
 2006 23.9 24.0 23.9 23.3 23.0 22.8 22.9 23.1 23.2 24.0 25.9 29.1
 2007 30.3 32.4 34.1 37.1 40.1 42.8 49.1 51.9 52.1 52.4 53.7 52.8
 2008 50.2 47.9 46.9 45.0 45.3 45.6 45.3 42.0 36.8 32.9 28.0 24.4
 2009 20.3 19.3 20.2 20.8 21.5 21.3 22.0 24.2 28.5 32.5 40.7 41.7
 2010 37.8 36.1 36.2 39.8 41.3 39.5 37.6 37.2 38.9 39.8 40.1 40.7
 2011 44.2 47.7 48.2 46.1 46.5 46.7 45.4 43.9 42.5 40.8 40.6 41.2
 2012 41.6 40.9 39.5 37.0 35.2 34.3 33.9 35.2 38.0 39.3 39.5 39.9
 2013 40.2 41.2 46.0 54.9 52.0 49.3 49.5 50.3 50.5 50.5 50.9 53.4
 2014 54.4 56.0 54.7 49.5 46.8 44.6 43.8 39.2 35.9 34.8 33.3 33.0
 2015 33.6 36.8 34.9 32.1 30.4 28.7 23.2 24.0 27.2 28.8 26.6 26.4
 2016 25.4 24.1 22.4 22.2 22.1 24.2 25.1 28.7 33.3 34.1 34.8 35.8
 2017 36.1 37.2 35.6 34.7  36.2  38.4  38.9  38.4  38.7  37.2  35.0  31.9
 2018 31.9  35.0  35.1  36.1 37.9 37.1 34.9 34.4 33.4 32.2 31.3  30.9
2019 33.6 35.8 38.4 40.7 42.1 36.6 36.4 36.4 36.2 36.2 37.4 38.5

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 (~32%), 2. Cheese & whey (~51%), 3. WMP (~17%), based on quarterly updated shares of the related commodities traded on the world market.

 

The calculation of the IFCN World Milk Price Indicators is based on the weighted average of three IFCN World Milk Price Indicators:
1. SMP& butter, 2. cheese & whey and 3. WMP.
Before June 2019, this set of dairy commodity bundles were weighted based on shares of related commodities traded on the world market and these shares were fixed for the whole time series of the indicator: 45% Cheese & Whey, 35% SMP & Butter and 20% WMP. Since June, the new approach is based on flexible trade shares which means that the share of the commodity on total dairy trade is calculated for each quarter.
The price is still the Oceania commodity export price weighted -now- by the quarterly trade shares for the commodities. This method is more precise and more market-oriented as it takes into account changes in import demand and seasonal trade patterns. Trade share calculations are based on the IFCN Trade Database.

 

Data Table: Trade shares per quarter 

Q1 Q2 Q3 Q4
SMP&
Butter
Cheese
&Whey
WMP
SMP&
Butter
Cheese
&Whey
WMP
SMP&
Butter
Cheese
&Whey
WMP
SMP&
Butter
Cheese
&Whey
WMP
2006 0.31 0.50 0.19 0.32 0.49 0.19 0.32 0.52 0.16 0.33 0.50 0.17
2007 0.31 0.50 0.19 0.32 0.52 0.15 0.29 0.57 0.14 0.30 0.52 0.18
2008 0.30 0.52 0.18 0.31 0.52 0.17 0.29 0.55 0.16 0.29 0.51 0.20
2009 0.31 0.50 0.19 0.32 0.50 0.18 0.30 0.53 0.17 0.32 0.50 0.18
2010 0.30 0.51 0.19 0.31 0.51 0.18 0.31 0.54 0.16 0.32 0.48 0.19
2011 0.31 0.49 0.20 0.31 0.51 0.18 0.30 0.55 0.15 0.31 0.50 0.19
2012 0.29 0.47 0.24 0.31 0.51 0.18 0.30 0.52 0.18 0.32 0.50 0.18
2013 0.31 0.49 0.19 0.31 0.53 0.16 0.31 0.54 0.15 0.32 0.47 0.21
2014 0.32 0.48 0.20 0.33 0.50 0.17 0.32 0.54 0.14 0.32 0.48 0.19
2015 0.33 0.48 0.19 0.33 0.51 0.16 0.33 0.52 0.15 0.33 0.47 0.19
2016 0.34 0.49 0.17 0.33 0.50 0.17 0.33 0.53 0.14 0.33 0.49 0.18
2017 0.32 0.51 0.17 0.33 0.52 0.16 0.32 0.54 0.13 0.32 0.50 0.18
2018 0.33 0.50 0.17 0.34 0.51 0.15 0.33 0.53 0.14 0.33 0.48 0.19
2019 0.35 0.44 0.20 0.30 0.56 0.15 0.33 0.53 0.14 0.33 0.48 0.19

 Latest Update: 30.10.2019

 

*In order to be able to show comparable outputs, the IFCN converts all milk with natural contents into solid corrected milk (SCM). Thus, milk outputs with 4.0% fat and 3.3% protein are generated. The formula applied is:

SCM = milk production * (fat % + true protein %) / 7.3

IFCN World Feed Price Indicator

Latest update: 19.12.2019

Data Table: IFCN World Feed Price Indicator in USD / 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 23.1 22.5 21.9 22.3 24.4 22.5 21.9 22.1 21.2 20.6
 2016  20.2 19.9 20.0 21.3 24.0 25.9 23.4 21.4 20.7 20.8 21.0 21.1
 2017  22.1 22.5 21.8 21.2  21.3  21.0  21.7  20.3  20.4  20.8  20.9  21.1
 2018 21.7  23.4  24.4  24.9 25.2 23.0 21.9 22.0 21.1 21.6 21.4 21.9
2019 22.0 22.0 21.7 21.4 21.8 24.2 23.4 21.2 20.7 21.8 21.6 21.5

 

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 indicator

The milk:feed price ratio is defined as milk price divided by the price of purchased feed (IFCN Combined World Milk Price Indicator / IFCN World Feed Price Indicator).

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.

 

Join the IFCN Network

If you would like to find out more about how to be involved, and what are the expected inputs and deliveries from IFCN please do not hesitate to contact the IFCN Dairy Network directly via mail info@ifcndairy.org or fill out the form below.

 

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