Milk price DOC Cheese opens sharply lower in 2018

With an annual supply of 600.000 kilos of milk, the milk price of DOC Cheese amounts to €35,92 per 100 kilos (4,41% fat and 3,47% protein), a decrease of more than €5 compared to the last month of 2017 The fat price drops from €0,44 to €3,20 per kilo. The protein price has decreased from €0,91 to €6,40 per kilo.

The milk price in January is still more than €3 higher than the 2017 level was started (€32,66 per 100 kilos).

(Text continues below the chart)The milk price of DOC Cheese opens 2018 more than €3 higher than last year.

False start for milk prices
The decline is the result of a wobbly market. The support that the milk price had during 2017 (in the form of increased cheese and butter prices) disappeared in the last quarter of 2017. The German cheese price has fallen by €750 since the autumn to €2.825 per tonne. The price of boter quoted €4.150 per tonne in the last week of December, just €3.000 below the price peak in September.

The market is concerned about how manufacturer prices will develop in 2018. The ample milk supply in Europe offers little in advance to support the market. Pessimists think that a milk price below €30 per 100 kilos in the second quarter cannot be ruled out. What is certain is that the milk prices of Arla, FrieslandCampina and DOC Kaas started falling in January.

Levies and premiums
The milk price of DOC Cheese includes a PZ levy of €0,23. Separately, a sustainability surcharge of €0,90 per 100 kilos can be earned. From 2017, there is a separate grazing allowance that can amount to €1,75 per 100 kilos.