Due to lower butter price
Milk value falls below 40 euros
The valuation of raw milk has dropped in October. Based on 4% fat and 3,4% protein, the value is €39,30 per 100 kilos of milk, a decrease of €2,80. This is how it has been calculated by the Foodstuffs Institute in Kiel (Germany).
The decrease is due to lower butter and milk powder prices in October. Because the intervention scheme has been discontinued since October, the price of skimmed milk powder has fallen by 6,7% to €1.505 per tonne. The average butter price in October was €6.566 per tonne. This is a decrease of 5,5% compared to September.
Downtrend continues
As a result, the raw material value of milk fell below the psychological limit of €40 per 100 kilos in October. The institute also foresees a downward trend for November. An expectation based, among other things, on the futures market for butter, which is quoted on the EEX in Leipzig. Compared to 1 year ago, the raw material value of milk is 15% higher, or €5,10 per 100 kilos of milk.
Despite the fact that the value of milk on paper has fallen below €40, the payout prices to dairy farmers remain the same. So made FrieslandCampina Monday 31 October announced that the guaranteed price in November will remain stable at €41,75 per 100 kilos of milk. Also Arla keeps the payout price the same.
Wouter Job
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