Inside: Dairy Market
Supply of Dutch milk continues to decline
The supply of Dutch milk shows a further decline in March. The decrease is the result of disappointing weather, but there is more to it. With the red figures for February and March, this immediately results in a quarter with the lowest milk supply since the end of the milk quota.
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In March, Dutch dairy farmers delivered 1,22 million tons of milk to the factories. A minus of 2,6% compared to a year earlier and almost 2% below the volume of 2016. The lower milk supply is partly caused by the extremely cold weather at the beginning of March.
Fat production slightly lower
It can directly explain the higher fat percentage in March. This amounts to 4,54%, compared to 4,45% a year earlier. As a result, the fat yield amounts to 55.195 tons. A difference of 0,6% compared to a year earlier. Something that also comes with it various processors has a positive impact on the milk price.
Still, it doesn't look like this is the complete explanation. There are sounds from the field that indicate that dairy farmers are trying to keep milk production per cow high through feed. Which should be enough to compensate for a week with fewer liters.
The other part of the explanation is probably that dairy farmers here and there have stopped. As a result, there are fewer dairy cows around. Particularly in the south of the Netherlands, contractors report that dairy farmers are quitting or have quit. However, it remains guesswork until the latest figures CBS be announced. These are expected towards the end of April, through the reporting of phosphate production.
Backlog is increasing
Dutch dairy cows produced a total of 3,55 million tons of milk up to and including March. A negative difference of 1,2% compared to the first quarter of 2017. Compared to 2016, this is even a deficit of 1,8%. However, if the supply is compared with 2015, it appears to be an increase of 15,8%.
Due to the introduction of phosphate rights, milk production per cow has also become important. Following the American example, a monthly report of the average milk production per cow would provide more insight into the rights that are required and therefore the steps that the sector still needs to take and the potential of the milk supply. Now we have to wait for the figures from CBS.
View the price of price for phosphate rights.
Milk production in March below that of 2016 and 2017.