Another drop for average milk price

The average milk price for May is €32,10 per 100 kilos of milk. This with an annual supply of 500.000 kilos of milk, 4,2% fat and 3,4% protein. It is a decrease of €0,42 from the last month and €1,28 lower than in the same period last year (-3,8%).

Most dairy companies lowered their milk price in May stable, but that has not prevented the average price from falling for the sixth month in a row. This is due to a number of strong price movements of, among others, Valio (-€2,40), Dairy Crest (-€1,60) and Hochwald (-€1,50).

Who pays out the most in May?
In the month of April, the Italian Granarolo (North) paid out the most, and that is also the case this month. The dairy company sets a milk price in May of €40,71 per 100 kilos, which is equal to the price in April. Even if we look at the average price of the past 12 months, the Italian company is at the top (€40,55 per 100 kilos).

The second place is taken by Valio. This dairy company sets a milk price of €34,90 per 100 kilos, with which it has made a significant correction compared to April (€-2,40). Over the past 12 months, the milk price has been €36,45 per 100 kilos.

Third place is for FrieslandCampina, the only Dutch company in the top 5. FrieslandCampina's milk price in May amounts to €33,39 per 100 kilos, a minus of €0,50 compared to April 2018. The average price over the past 12 months is €37,20 per 100 kilos. That price will probably rise in the near future, because FrieslandCampina has indicated that it will increase the prices for June (+€0,20) and July (€1,50).

(Text continues below the chart)An overview of a number of milk prices in the Netherlands, including FrieslandCampina. 

Royal Aware, the other Dutch company is in tenth place. This while the company managed to get third place last month. The milk price in May is €32,01 per 100 kilos, €0,90 less than in April. However, this one too dairy company has indicated to increase the prices for June (+€0,30) and July (+€1). The average milk price over the past 12 months is 37,26 per 100 kilos, which is still higher than FrieslandCampina.

Outside of Europe
If we look at the milk prices outside of Europe, it is striking that Emmi is particularly high. Emmi's milk price for May is €43,68 per 100 kilos, a substantial plus of €3,30 compared to April. This is largely due to the discontinuation of the C price (the milk price paid was previously an average of the A, B and C prices).

The American milk price (class III) also shows an increase in the milk price. Last month, this was still €30,05 per 100 kilos, while in May that increased to €32,73. However, this is also partly due to the appreciation of the dollar against the euro.

Positive expectation
From the LTO Milk Price Comparison there is still a positive outlook for the coming period. This is because the milk prices in April and May are usually the lowest in the year. Since the prices for butter and skimmed milk powder have increased recently, the average milk price will rise again in the coming months.

A number of dairy companies have already indicated that they will increase their milk price for June and July. Arla, for example, increases a total of €2,80, FrieslandCampina by €1,70 and Royal A-ware is putting away an increase of €1,30 per 100 kilos. In addition, DMK has announced a price increase of €1 per 100 kilos for June.

Look for more figures and milk prices in our Database.