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BTG Advisory looks at the cyclical peaks and troughs in supply and demand in the farming sector, and the impact of Brexit on international trade.

British food competes on the world stage and while that brings with it immense opportunity, it also exposes the nation’s farmers to a global market. All industries that operate in global markets face periods of price volatility and this includes the farming industry.

Dairy’s Mini Recovery

The much-maligned dairy industry is finally showing signs of recovery. A sustained period of low prices has seen many producers selling commodities at prices significantly lower than the cost of production. This has led to even the most efficient producers questioning their long-term sustainability.

The most recent Defra figures to September show that UK average farm gate milk price stood at 22.58p per litre – a 5.2% (1.11p per litre) increase on the August average price. While this remains 4.8% lower than the same month last year, it is the third consecutive monthly increase.

Please click here to read more from our agriculture update.

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