Countus Dairy Cattle Index
Dairy cattle Index shows unprecedented rise
The Countus Dairy Cattle Index continues to show an upward trend. The reason for this is the rising milk price. This is mainly caused by the rising prices of butter and cheese. Feed prices are also falling.
The Countus Dairy Cattle Index, which is compiled in collaboration with DCA, comes out at 190.9 points. The average of the past 10 years counts as 100. With this the Index has increased by almost 4 points in the past 16 weeks.
190.9
points
The improving milk prices mean that the Countus Dairy Cattle Index is responsible for the increase. The Index has not been this high since 2004. Only in 2008 the Index managed to finish high, namely at 150 points. Although that is still a big difference from now.
Ongoing Demand
The increase has a number of causes. The butter price is approaching the historically high limit of €700 per kilo of milk. The German cheese price is also doing well, pushing up the milk price. Milk is a scarce commodity on the spot market. Dairies can use every liter of milk. The disappointing fat contents make it difficult to produce butter. In addition, stocks are low.
Also the falling feed prices are partly the cause of a rising Index. The fall in the price of silage maize, among other things, causes feed costs to fall, which has a positive effect on the Dairy Cattle Index.
Rise levels off
It is uncertain whether the Index will continue to rise in the coming weeks. The forecast shows a flattening trend. It is to be expected that the value of milk fat can still take significant steps upwards. This is because the butter price is already at a very high level.
Practice should show where the top of the butter price will be. Some parties are optimistic about the coming quarter, while others expect declining spot prices. 
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