Market indicators: AMPE, MCVE and Milk Market Value

Updated 25 March 2026

Here we explain three indicators used to track milk market returns in the UK: Actual Milk Price Equivalent (AMPE), Milk for Cheese Value Equivalent (MCVE) and Milk Market Value (MMV). The figures are based on wholesale price movements and help show general market trends. The data is updated monthly.

• AMPE is an indicator of the factory gate value of a litre of milk used for butter and skimmed milk powder

• MCVE is an indicator of the factory gate value of a litre of milk used for mild Cheddar and whey powder/butter.

• MMV is an indicator of the average market value of a litre of milk based on typical utilisation of milk in the UK. Movements in the MMV correlate strongly with changes in farmgate milk prices in 3 months’ time

Important: Production costs and yields have been adjusted in September 2025 following a full review. This calculation has been back-dated for 12 months to enable year-on-year comparison of trends.

As the data for these adjustments is always in arrears, AMPE and MCVE can only estimate actual market returns.

Figure 1. AMPE and MCVE over the past three years (pence per litre)

Source: AHDB

Figure 1 shows two lines representing AMPE and MCVE. Both indicators follow a similar pattern over the past three years. Values peaked in August 2024, declined steadily until late 2025, and began rising again from January 2026.

Table 2. Components used to calculate MCVE (pence per litre)

Source: AHDB

Figure 2. MMV over time (pence per litre)

Source: AHDB

Source: AHDB

The AMPE and MCVE calculations were reviewed in September 2025 to take into account higher milk compositional quality and changing production costs. A summary of the changes is available to download below.

The changes will be implemented from 25 September 2025. For a transition period of 6 months (until March 2026) we will dual-report based on the 2020 (indexed) and 2025 calculations.

The next update on production costs will take place in July 2026 and will be updated quarterly and then along with yields annually.

Please note that AMPE and MCVE calculations do not include the cost of transport of milk to the dairy.

According to a 2014 survey of members of Dairy UK, the range of transport costs that can be encountered in the UK dairy industry are from 0.9ppl to 4.8ppl.

The lower limit typically applies to purchasers with compact milk fields with larger farmers, while purchasers with geographically dispersed milk fields and smaller, less accessible farmers pay up to 2.4ppl on average.

For some individual collection routes that involve reloading costs, transport costs can be as high as 4.8ppl.

MCVE and MMV have been adjusted accordingly. There is no change to AMPE.

If you'd like a copy of the Review of Dairy Market Indicators report please email dairy.mi@ahdb.org.uk

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