The growing gap in raw milk pricing between the Intervention Manufacturing Price Equivalent (IMPE), at just over 16.2ppl, and spot prices, at anything up to 23ppl, will lead to a tightly negotiated milk pricing round. Cheesemakers have started bidding in earnest on the spot market for milk to make crumblies and Stilton. This has strengthened producers' bargaining position in a market which, increasingly, is unlikely to reach quota. August output was 0.55% over the quota profile, but there is still a lot of ground to make up. While a sagging euro exchange rate of little over 60p will depress IMPE-linked price formulæ, the strong spot market will bolster producer price expectations. {{PROVISIONS }}

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