The Milk for Cheese Value Equivalent (MCVE) stood at 29.15ppl in June - 0.41ppl (1.4%) less than in May. This is the first fall in the value of MCVE since March 2008. The price of mild cheddar remained stable at £2,850/tonne. The price of whey butter increased between May and June, by 3.9% (£75/tonne) to an average of £2,000/tonne. However, the significant fall in the price of whey powder -  of 15.5% (£80/tonne) to an average of £435/tonne for June - has meant that, despite the increase in whey butter price, the value of MCVE has fallen between May and June.

Annual comparisons show that MCVE has increased by 4.18ppl (16.7%) since June 2007, when it stood at 24.97ppl. The June price is also 2.45ppl (9.2%) more than AMPE (Actual Milk Price Equivalent).

For further information on UK Wholesale Prices please click here.

For information on how MCVE is calculated please see MCVE Helpsheet.

(ppl)	June 08	1 Month Before	12 Months previously
FACTORY GATE MCVE	29.15	29.56	24.97

It must be stressed that different factories will have different efficiency and cost levels and do not just make mild Cheddar. Therefore the MCVE has not been formulated to be the price that processors should pay farmers for milk for cheese, but merely a benchmark of value that can be used to compare against changes in milk prices.

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