Milk price continues to rise in 2017

The rise in the milk price, which started in the first half of 2017, will also continue in the second half of this year. That is what Willem Koops of ZuivelNL said at the International Milk Price Comparison 2016 meeting. 

He bases his prediction on signals from various dairy farmers in various European countries. Koops: 'It is almost inevitable that the recovery of the milk price will continue.' He refers to the Danish DMK, which already indicated in May and June that it would increase the milk price. Ireland has already raised the milk price. 'On the other hand, FrieslandCampina and Arla still have to get moving', says Koops. 

Fat drives up milk price
The expected price increase is related to the demand for milk products and the supply thereof. Fat prices have meanwhile risen to record highs. The demand for fat drives the milk price. At the same time, the milk supply is not expected to increase. 

Price difference very big
The price difference between skimmed milk powder and fat has never been greater. The demand for protein is minimal. The stock of European milk powder is 350.000 tons. Kees Romijn, chairman of LTO Dairy Farming: 'This stock will have to come on the market one day. The question then is to what extent these stocks will disrupt the market.'

The International Milk Price Comparison shows that 2016 was a particularly bad milk year. The average milk price just did not reach the lowest level. That was in 2009. 

Netherlands in fourth place
The milk price comparison shows that the Italian Granarolo and the Finnish Valio achieved the highest payout prices. They paid an average of 36,83 euros and 35,21 euros respectively per 100 kilos of milk in 2016. Coöperatie FrieslandCampina is in fourth place with an average milk price of 30,80 euros per 100 kilos of milk in 2016. 

Koops indicates that milk prices between the various dairies in the Netherlands are increasing. Check here the milk price comparator.

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