Inside: Dairy Market
Indicative milk price back in the plus
For the first time in 5 months, the indicative milk price shows a plus again. This means that the valuation of milk is again approaching €30 per 100 kilos of milk. It is also good news that the European Commission succeeded for the first time in selling a substantial volume of milk powder.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The appreciation for fat shows an increase again in March. It translates into a fat price of 22 cents per kilo. A plus of 2,6 cents per kilo compared to the previous month. That plus does not occur in the protein, where the price even drops to 8,6 cents per kilo.
A plus in the fat and a minus in the protein translates into an indicative ex-farm milk price of 29,2 cents per kilo of milk. This at 4% fat. It is the first increase in 5 months. The plus in bold will continue in April, which also improves the forecast for the milk price.
More milk powder sold
What also helps are the small increases in the price of skimmed milk powder. There is starting to be some more action there due to dwindling stocks. At the same time, the European Commission managed to sell 17 tons of skimmed milk powder from intervention in the tender of April 24.066,3. This at a bottom price of €1.050 per tonne. With which the Commission meets the demand from Eucolait, the European Dairy Trade Organization.