Mintec has changed its German Cream MBP [JR92] assessment specifications to a 100% fat basis

All Market Notes 7 July 2022

Following a decision market note that was published on 7 June 2022, Mintec has changed the methodology of its Mintec Benchmark Prices for Cream Bulk 40% EXW Germany (Mintec Code JR92) to be assessed as a 100% fat level.

Mintec received feedback supporting the methodology change, with no opposing feedback received during the consultation period. This methodology change went into effect on Thursday 7 July.

The methodology change brings this assessment in line with the typical convention seen in Germany for the cream trade. This change sees the benchmark become even more reflective of the terms of trade in the region and provides greater transparency and usefulness for benchmarking to market participants.

Please note that, as the methodology now specifies a 100% fat level assessment, the quantity has been updated. The minimum quantity still refers to a full tanker of 25,000 litres, and the fat content of this quantity would thus represent a minimum of 10 metric tonnes to reflect the actual amount of fat within 25,000 litres of cream.

The methodology change means that all historical data for this assessment (Mintec Code JR92) have been amended to reflect a 100% fat level assessment. All assessments before the methodology change date were divided by 0.4 (40%) to reflect the 100% fat level.

Full details of the current methodology can be found in the Mintec Assessment Specifications Guide available here. Please send any feedback about this proposal to methodology@mintecglobal.com, state which market note your comments relate to, and if comments are intended for publication by Mintec.

Mintec will acknowledge receipt of all comments by email.