European milk prices show only an increase

The calculated advance milk prices in August amount to an average of €36,03 per 100 kilos. That is an increase of €0,71 compared to last month. If we compare these prices with last August, the milk price is now €8,83 higher. 

Only rising prices
As mentioned above, there is no dairy company that allows the milk price to drop. DMK's milk price shows the largest increase in August, namely an increase of €2 per 100 kilos of milk. Dairygold (+€1,50), Kerry (+€1,40) and FrieslandCampina (+€1,20) also showed significant increases. 

Dairy Crest's milk price is lower. This is mainly due to the falling pound, which causes the price (converted into euros) to be lower. The prices of Emmi (-€1,70) also show a decrease. This decline is also the result of a decline in the exchange rate, in this case of the Swiss Franc. 

The market mainly shows growth
European milk supplies showed an increase of more than 2% in July. As a result, growth was achieved for the second month in a row. However, a mixed picture is visible. For example, the supply increased in Ireland, Poland and Italy, but a smaller volume was visible in Germany, France and the Netherlands. 

The dairy market still has two faces. The prices of skimmed milk powder have been under pressure for some time. This is a result of declining demand and increased competition on the global market (especially from North America and Oceania).

However, the Dutch quotation of butter is at unprecedented levels. It must be said that the price now appears to be falling. But the high prices, in combination with the unfavorable euro-dollar exchange rate, are putting pressure on quotations.

What is the expectation for the coming period?
Milk prices in the European Union will rise further in the coming months. For example, DMK (+€1), Hochwald (+€2) and Lactalis (+€1) have already indicated that they will increase milk prices in September. Arla (+€1 and +€0,70), FrieslandCampina (+€1,90 and +€1,20) and Dairy Crest (total increase: +€3,80) also indicated that they would increase milk prices for September increase, their milk price for October will also increase. 

This brings FrieslandCampina's milk price for October to €40,61 per 100 kilos. The dairy company is the second, after Granolo, to pass the limit of €40 per 100 kilos. 

View the milk price comparator here.