Milk price comparison in the EU has risen sharply

The average milk price in June (with an annual supply of 1 million kilos of milk) amounts to €32,71 per 100 kilos (4,2% fat and 3,4% protein), a plus of €0,60 compared to the May. However, it is still a minus of €1,43, compared to the June 2017 price.

To 1 million kilos
It's the first time that one higher annual delivery is used. According to LTO Netherlands, the switch from 500.000 kilos to 1 million kilos of milk better reflects the size of dairy farms. "Assuming that the size of the farm will increase further in the coming years and given the larger size of specialized dairy farms, 1 million kilos has been taken as the standard."

In 2016, average production exceeded 1 million kilos of milk only in Denmark and the United Kingdom (UK). The companies there produced 1.654.418 kilos and 1.128.961 kilos of milk respectively. The Netherlands produces less and amounts to 826.462 kilos of milk. The two largest dairy producing countries (Germany and France) produced an average of 2 kilos and 472.379 kilos of milk. Production growth continued in 426.537 and the first months of 2017.

Top 5 upside down
The top 5 go about June a lot of work. For example, the Italian Granarole and the Finnish Valio managed to retain first and second place. They set a milk price of €37,85 and €34,90 per 100 kilos respectively. However, the French Sodiaal comes in third place (€34,08 per 100 kilos). FrieslandCampina drops 1 place and is quoted at €33,75 per 100 kilos. The Dutch a-ware is the bottom of the top 5 (€33,58 per 100 kilos).

Outside the top 5, Milcobel is doing considerably better. The processor rises from 16th place to 7th place. This is of course at the expense of other companies. For example, Dairy Crest appears at the bottom of the list (€28,23 per 100 kilos). Alois Müller and Hochwald are also doing considerably worse and record prices of €30,73 and €31,46 per 100 kilos respectively.

There will be about July even more milk prices increased and even August yields a plus in the milk price. The drought is also starting to play a role and results in an increase of 5 pence per liter at Dairy Crest. This increase is mainly intended to support dairy farmers. Lactalis does not give this as a reason, but does increase by €0,50 for September.

Milk is more expensive in the US
The price of Fonterra remains stable at €31,29. In Switzerland, the milk price is increasing due to the expiration of the seasonal levy. The price for A-milk is €48,32 per 100 kilos. Milk also yields more in the United States. An increase in the dollar rate, in combination with an increase in the price, results in a price of €33,19 per 100 kilos. It means that the American price beats some of the European milk prices. A month earlier, the price was well below the European price.