Mintec to assess its German Cream MBP [JR92] on a 100% fat basis

All Market Notes 7 June 2022

Following a period of market consultation, Mintec will change the methodology of its Mintec Benchmark Prices for Cream Bulk 40% EXW Germany (Mintec Code JR92) to be assessed as a 100% fat level instead of being assessed at a 40% fat level.

Mintec received feedback supporting the methodology change with no opposing feedback received to this market note during the consultation period, therefore this methodology change will come 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 will see the benchmark become even more reflective of the terms of trade in the region and provide greater transparency and usefulness for benchmarking to market participants.

The current methodology sees the assessment made on a 40% fat equivalent basis. This means that currently any price points received from industry participants on a 100% fat basis are converted to a 40% fat basis by multiplying the price by 40%. Under the new methodology, the multiplication step will simply be omitted for assessments after the change on 7 July 2022 and the assessment will be reflecting the actual specifications received from industry.

The methodology change means that all historical data for this assessment (Mintec Code JR92) will be amended to reflect a 100% fat level assessment. All assessments before the methodology change date will be divided by 0.4 (40%), to get these price point to reflect the 100% fat level.

The below table shows the effect on price points would be, taking April 2022 as an example:

 

 

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.