Countus Dairy Cattle Index
Dairy cattle Index recovers after February dip
The return on the dairy farm also declined further in February. At the beginning of March, the Countus Dairy Cattle Index calms down a bit.
115,10
points
All in all, February writes less rosy results. For example, feed prices still remained relatively stable, but the valuation of the various dairy products is under pressure. In week 9 the index is again at 115,10 points. Towards September, the index will hover between 115 and 120 points.
A direct result of the interaction that prices for fat, butter, and protein, skimmed milk powder show on the futures market. Compared to January, butter prices have risen by 5 to 15 percent, while skimmed milk powder has actually fallen from 6,2 to 14,3 percent. In May, in particular, intervention is once again in sight for skimmed milk powder.
The position of the Index does not give rise to the culling of cows. The fact that the slaughters still break records and the prices for cows class U to P and sausage cows first and second type fall in price is purely and simply prompted by the fact that dairy farmers are pre-sorting on the phosphate reduction plan that came into effect on 1 March. The levies for any LU above the target number or LU reference are hefty, negatively impacting returns.
In a year like this it is better not to give a value judgment to the forecast. Based on the dairy products, we can speak of a reasonable year, but that is too short-sighted when various companies have to keep fewer livestock.
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Herman van den Pol
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