The milk prices of the Dutch processors (FrieslandCampina and A-ware) dominate the European top 3 in April. The Italian Granarolo is in first place, followed by the Dutch. This emerges from the LTO International Milk Price Comparison.
The average milk price in Europe for April is €32,51 for 100 kilos (with an annual supply of 500.000 kilos of milk, with 4,2% fat and 3,4% protein). It means that the average milk price has taken a step down (compared to March), but it also means that for the first time under price from 1 year earlier. April 2017 yielded an average milk price of €33,06 per 100 kilos.
Italy at a lonely height
The Dutch processors perform relatively well compared to other processors. That's how it takes FrieslandCampina with a milk price of €33,87, A-ware takes third place with €32,89. However, it also means that the distance between the Italian price of €40,71 and that of FrieslandCampina has increased. This could happen because the Italian milk price remained stable, while the milk price of number 2 decreased.
The prices of Arla, DMK/DOC Cheese and Milcobel are much lower. These processors' prices are closer to the realistic value of milk. Where FrieslandCampina bases itself on reference companies and A-ware performs above average.
Extreme weather
In April it will be again Irish processors that distort the image slightly. Glanbia, Kerry and Dairygold still pay a kind of solidarity premium as support to dairy farmers (for damage caused by extreme weather). These amounts will decrease slightly in April, but are still between 0,50 and 1 cent per liter.
The bottom performer for April (on the European market) is Dairy Crest. The expiration of a seasonal bonus, in combination with a decrease in the basic price, results in a milk price of €29,23 per 100 kilos. Bad news for the British, which are among the highest in the European Union (EU) in terms of cost price.
Pluses outside the EU
Outside the EU the results are mixed. Switzerland must hand over milk money; For example, the Swiss Emmi paid a C price for the first time, which reduces the milk price to €40,39 per 100 liters. There are pluses in the United States (US) and New Zealand. Fonterra increases to €31,06 and opens the 2018/2019 season with an even higher basic price. In the US, the milk price increases to €30,05 per 100 kilos.
Milk processor | April | 12 Month Moving Average |
Granarolo | €40,71 | €40,37 |
Emmi | €40,39 | €48,30 |
FrieslandCampina | €33,87 | €37,37 |
a-ware | €32,89 | €37,37 |
High forest | €32,68 | €34,84 |
Sodiaal | €32,62 | €34,47 |
Bongrain | €32,51 | €34,07 |
Danone | €32,44 | €34,94 |
dairy gold | €32,27 | €34,75 |
lactalis | €31,83 | €32,38 |
Kerry | €31,43 | €33,62 |
Fonterra | €31,06 | €34,65 |
glanbia | €31,03 | €31,38 |
DMK/DOC cheese | €30,79 | €34,46 |
Alois Muller | €30,63 | €35,42 |
Arla Foods | €30,53 | €35,00 |
USA | €30,05 | €41,19 |
Milcobel | €29,94 | €38,21 |
Dairy crest | €29,23 | €38,08 |