Inside DCA Dairy Cattle Index
Milk yields rise just a little faster than costs
The DCA Dairy cattle index, a return barometer for dairy farming, rose last month to its highest level in more than three years. Although costs are at a high level, dairy prices are still rising a little faster.
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The index reaches 114,6 points (100 = ten-year average) at the beginning of October. That is an increase of almost 11 points compared to the level at the beginning of September, when the index stood at 103,9 points. Rapid increases in underlying dairy quotes are largely responsible for the improved returns. This continues the upward trend that started in August.
Butter and powders more expensive
The prices of butter and powders largely determine the development of the index. Butter became considerably more expensive during the month. The price rose from €4030 per tonne at the beginning of September to €4370 per tonne four weeks later. An increase of 8,5%. Skimmed milk powder also rose in price, from €2580 per tonne at the start of the month to €2740 per tonne at the beginning of October.
Beef cattle sold for unchanged prices. First quality sausage cows fetched a fraction more in Leeuwarden at the end of the month. The price of first quality sausage cows was €40 to €2,75 per kilo in week 2,95.
Costs are also rising
The increase in the index was somewhat limited by the increased costs for, among other things, animal feed and manure sales. According to the LEI, standard chunk A was €0,10 more expensive per 100 kilos in September, which amounted to €28,55 per 100 kilos. The average price for selling cattle slurry at the end of the month was €16,58 per tonne. That was €1,50 per ton more than at the beginning of the month.
Since the rise in dairy quotations does not appear to have stopped yet, returns in dairy farming may improve further in October.