consumer price index
Consumer price dairy at record level
The year 2017 is characterized by high milk and dairy prices. This is reflected in the consumer price index, which reached a record high of 117 points in November and December.
The price level is therefore 8% above the level of 2016. The index from farm With 130 points, the producer price index (PPI) ended at 2014 points in December 2017, after a record high of 118 points in September.
Record high consumer price
The consumer price index ended at 2017 points in November and December 117. The year 2017 is characterized by increases. Since January, the price index has reached a new record every month. On average, the consumer price index was 7 points higher than in 2016 and 4 points higher than in 2015.
The rise in the consumer price index in the first half of the year was mainly influenced by developments in fresh milk prices. They increased by 2016% between October 2017 and April 26. The largest increase was visible for cheese and cottage cheese (+10%). However, the prices of fresh milk (+5%), long-life milk and yogurt (both +4%) and other dairy (+8%) also rose.
Higher producer prices
The farm-gate price index ended at 2017 points in December 129. That is 1 point lower than in the previous month. This price index averaged 2017 points in 119, which is 23 points higher than in 2016 and 17 points higher than in 2015. In January, the ex-farm price index still showed a level of 108 points, with a high of 130 points in November. .
The producer price index ended at 2017 points for the whole of 118, which is 18 points higher than in 2016 (+7%). Compared to 2015, it is a plus of 9 points. The Producer Price Index started at 112 points in January and rose to a record 122 points in September (only equaled in January 2014). In the following months, the index fell again slightly.
Dairy market will grow
In the course of 2017, the increase in global demand proved to be greater than supply. The European Union (EU) expects the dairy market to grow in the coming years, with the EU likely to account for nearly 30% of additional global demand.
However, in the short term, the EU has a large amount of milk powder in intervention and it is still unclear when and how it will be marketed. This creates uncertainty about how the Dutch dairy market will develop in 2018.
*The year 2010 is equal to 100 points and is included as a reference point.
Kimberly Baker
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.