EU milk prices rising again in July

The favorable market situation and the seasonal effect are driving up milk prices for July in almost all countries. Only the German Hochwald kept the price unchanged and Fonterra and the USA (United States class III) dropped in price.

These three exceptions are the result of a strong increase in production. Milk production in the United States has been growing by an average of 3% for some time now. 

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Price in euros per 100 kilos from January to July 2017.
Source: Boerenbusiness

French milk prices rose less rapidly
French milk prices rose less rapidly in July, with the exception of Sodiaal (a plus of €2,90). The expectation is that the French will catch up in the coming months. Lactalis has already announced further price increases for August (a plus of €1) and September (a plus of €1). 

The milk price of the German DMK will also increase in August by €1 per 100 kilos. Arla and FrieslandCampina increased their prices in August and September by a total of €2 and €3,20 per 100 kilos.

Text continues below the chart.Price in euros per 100 kilos from January to July 2017.
Source: Boerenbusiness

The British are slowly catching up
The price of the English Dairy Crest has risen as a result of the abolition of the seasonal levy. In addition, the British dairy farmer is suffering from the depreciation of the British pound. Dairy Crest has already announced price increases for September and October. This concerns increases of 3 pence per litre. That is €3,40 per 100 kilos. 

Milk prices are expected to continue to rise this year. LTO concludes that 2017 will be a good milk price year, although the record years 2013 and 2015 remain out of reach. 

The price difference compared to last year shows that the market is becoming more volatile. The difference with 2016 is significant, namely a third or almost €9 per 100 kilos. 

Milk production is increasing
Milk supply in Europe has been increasing since last month. In June, milk supplies were on average 2% higher than in the previous month. Milk production did not increase in all countries. Volume fell in the major dairy countries such as Germany, France and the Netherlands. German milk production has recovered the most in proportion. 

There was a mixed picture within the EU. On the one hand, supply increased sharply again, especially in Ireland and Poland. On the other hand, volume fell in the major dairy countries Germany, France and the Netherlands. However, in Germany, the degree of decline has decreased compared to the previous months. 

Emmi pays by far the most
Milk prices from high to low for July 2017