2023 Overview

As the year draws to an end it feels like only yesterday we were toasting the start 2023, or is that me just getting older?  The last 12 months has seen significant movements in both input prices and output prices for agricultural goods.  Milk price has gone from the dizzy heights of 50 ppl to 36ppl, fuel prices have gone from the mid 80ppl at the start of the year down to as low as 60ppl and now bouncing around the 70ppl, fertiliser prices have come back significantly from their heights of over £800/t to around £380/t and feed prices have, and continue to drop from around £380/t to the low £300’s.  These swings in the market make it difficult for business managers to budget forward, but in uncertain times it is essential to do so, otherwise you will not know where you are going financially.

One advantage of using a buying group is being able to take advantage of fixed contracts that protect your business from the variations in the market prices for inputs as well as taking advantage of buying bulk buying discounts.

As we move into 2024 there are some positive signs that the milk price is on the turn.  GB, EU and Global milk markets are all showing a drop in production month on month, which should help to drive prices up, as seen by price increase announcements for January 2024.  The feed market continues to show a downward trend, but this will be driven by global events particularly issues in eastern Europe affecting cereals and issues in south America affecting proteins.  The use of the cost book mechanism to buy individual ingredients allows us to buy when prices look low rather than going to tender on a specific date.

At DBL Buying Group we endeavour to provide our members with quality products at the best price.  We would like to take this opportunity to thank members for their business over the last year and look forward to working with you in 2024.  We wish you a very Merry Christmas and prosperous New Year.