UFU MPI 12-month Review
Thursday, 1 May, 2014
The Ulster Farmers’ Union are set to review the UFU’s Milk Price Indicator (MPI) following its first year of operation. The UFU MPI was introduced following the demise of the UDF Auction. The MPI is a pence per litre figure published every two weeks with supporting analysis and was designed to give dairy farmers an indicative value of what the market is capable of delivering.
Newly elected Dairy Policy Chairman Jonathan Moore said: “When we launched the UFU Milk Price Indicator (MPI) it was agreed that the Union would review the formula after 12 months of operation. Over the last year, the UFU’s MPI has proved to be a robust and transparent pricing mechanism providing UFU members with an indication as to what markets are returning based upon Northern Ireland relevant commodity products. British Dairying magazine has also included the UFU MPI in its market price comparison.
“In 2013 we saw record prices for Dairy Commodities which has been reflected in good returns for local dairy farmers to date. However price volatility remains an integral part of the dairy market and with quota being abolished in under a year this review will help us to ensure that the MPI is fit for purpose going forward. It is also very timely that the Union’s 12 month review of the MPI coincides with the Dairy Co commissioned review of the dairy market indicators AMPE (Actual Milk Price Equivalent) and MCVE (Milk for Cheese Value Equivalent). The findings were published two weeks ago and will form part of our review as both of these market indicators are integral to the UFU’s MPI.”
The UFU’s MPI review is set to be concluded over the next few weeks.