It is also a factor which, combined with the rest of the IMPE
calculations, generated a negotiating opener of 16.
The original method for IMPE
calculation was issued by the Office of Fair Trading to Milk Marque as a basis for its pricing.
7927, where the IMF has indicated it thinks the UK should aim to join, then the 21ppl difference is equivalent to a 7ppl increase in the IMPE
The falling intervention rate component has steadilypushed down IMPE
Although pricing is usually IMPE
-linked in some way, Zenith has been selling at IMPE
plus a premium: in April this meant 16.
There is a growing disparity between IMPE
based price levels offered by processors of 18ppl and less against increasingly firm spot prices.
Only spot milk is expensive: there is still raw milk being traded at IMPE
plus a penny.
He said, ``With world markets improving, the strengthening of the Euro leading to an increased IMPE
and milk supply lower than this time last year, the conditions for another increase in milk prices are very much in place.
On the plus side, Evans cites strong SMP and butter prices and the fact the IMPE
price linkage has been broken by shorter supplies.
But the euro has strengthened so much since then, the average price we are getting now is around 18ppl, over 10% below the IMPE
,'' said Mr Davies.