French milk price beats FrieslandCampina

FrieslandCampina managed to rise 1 position in the rankings in July. This is achieved by an increase of €1,46, which results in a milk price of €35,21 (with an annual supply of 1 million kilos with 4% fat and 3,4% protein). This milk price is sufficient for third place. However, the increase is insufficient to prevent the French Danone from rising to second place. Danone increased the milk price, compared to of June, with €3,60, which therefore amounts to €37,13 per 100 kilos. 

French milk prices end high
In any case, French milk prices are doing relatively well, just like in the June basket. This is further stimulated by the aim to pay more for milk in the autumn. This is because French milk processors want to boost milk production. Lactalis has indicated that it will increase the milk price by €0,50 in both months.

Lactalis' milk price is higher anyway, because the French processor works with a bonus-malus system. "The milk price includes a premium of €0,43 per 100 kilos." Dairy farmers who have not supplied too much milk in the months before July will receive the premium. The bonus is paid from the levy withheld from those who supplied too much milk.

Dutch milk prices in the middle bracket
Due to the pluses, the milk prices of the French processors are falling a-ware slightly down in the rankings. The milk price of €34,53 per 100 kilos results in seventh place. The German DMK, of which DOC Kaas is also a subsidiary, holds on to twelfth place. Milcobel performs slightly better, with a price of €33,22 per 100 kilos.

On average, the milk price of European milk processors is €33,96 per 100 kilos. That is a plus of €1,25 compared to June, but still below the price of July 2017. The milk price started to increase considerably in 2017 around July, so the difference with 2018 is starting to increase. This despite the rising milk prices.   

Milk prices outside the EU
Outside Europe, it is again the milk price in the United States that stands out. This increased considerably in June, but in July the price dropped again: from €33,19 to €30,74 per 100 kilos. Around July, the trade war had an impact on the dairy market. Fonterra's milk price changes only slightly as a result of the exchange rate.

The Swiss Emmi increases the milk price to €51,79 per 100 kilos. A lower B milk price is compensated with a seasonal bonus. The levy as a contribution to butter exports will also not be implemented, because less butter has been produced due to the long period of dry weather.