Prospects in milk getting better

The outlook for dairy farming is steadily improving, mainly due to the weak recovery in protein. The Countus Dairy Cattle Index also benefits from higher livestock prices.

In the past year, the gap between the prices of fat and protein grew. For example, the price for butter is almost 25% higher compared to 2017, where protein is 18% lower. In the last few weeks, the protein price has slowly started to recover, which is good news. Despite the high butter price, the valorisation of milk towards butter is still the lowest. 

Index figure considerably higher
The pluses in the prices also result in a higher Index figure. It will go up in week 17 to 154,70 points, a plus of 26,7 points compared to week 13. The Index forecast also shows an improvement and indicates that this is also the direct trend for the coming weeks.

It offers perspective for dairy farming. At the same time, it may take a while before the trend becomes visible in the milk price. This is because the milk price rose further above the market price in the last six months. Those losses should probably be compensated.

Other positive developments are the higher prices for cows and calves. Higher costs are seen in the feed (for example for chunk† Cheaper alternatives are available, but by no means every livestock farmer is able or willing to intervene. In addition, there is now also plenty of fresh grass, with which chunks can be replaced.

Herman van den Pol

Herma van den Pol has been with us since 2011 Boerenbusiness and has developed over the years into a market expert Milk & Feed. In addition, she can be seen weekly in the market flash about the dairy market.

h.vandenpol@boerenbusiness. Nl

© 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.