Inside Milk
Another increase for average milk price
The average milk price has risen for the fifth time in a row, although this increase is starting to level off. This is apparent from the LTO International Milk Price Comparison. What will the price be and what are the expectations for the coming months?
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De average milk price in the European Union in September amounts to €34,69 per 100 kilos, an increase of €0,34 compared to the previous month. However, compared to September 2017, the milk price is €2,51 (or 6,7%) lower.
Flattening the price
The increase is expected to gradually level off. A few more price increases have been announced for October, but most milk prices remain stable for November. An exception to the rule is FrieslandCampina which, after a price increase in October (+€1), has reduced the milk price for November by €0,70 per 100 kilos.
Dairy farmers who supply Savencia, Lactalis and Dairy Crest already have clarity about milk prices for the rest of the year. For example, the milk price of Dairy Crest will remain at the September level (€35,02) until January. The milk price of this British processor also shows a sharp increase compared to last month (+€2,30). This has to do with the seasonal surcharge and surcharge for the bad weather conditions of the past period.
The milk price of Savencia shows an increase of €0,50 for November and remains unchanged in December. For Lactalis, the milk price increases by €0,30 in November and December remains unchanged here too. DMK and Arla have already announced that they will not change the milk price for November.
Changing picture outside Europe
Outside the European Union, the picture is more mixed. For example, Fonterra, which exports the majority of its production, has lowered its forecast for the current year. This would bring the milk price (converted to euros) at €28,70 per 100 kilos. Compared to the previous forecast (of September 13), it is a decrease of €1,60.
In contrast, milk prices in the United States are rising. Here, the price rose from $14,95 in August to $16,09 in September. That is the highest level in 2018. The milk price of the Swiss Emmi shows an increase of €0,50 in September, as a result of an increase of the Swiss Franc against the euro. However, for November the price drops by €3,80 due to the expiry of the seasonal surcharge.
| European processors | September price | Difference August | Average (12 months) |
| Granarolo (North) | €37,87 | = | €39,17 |
| Danone (Pas de Calais) | €37,55 | + € 0,20 | €35,09 |
| Sodial (Pas de Calais) | €36,51 | = | €34,73 |
| FrieslandCampina | €36,42 | + € 1,20 | €36,49 |
| Lactalis (Pays de la Loire) | €35,32 | + € 0,50 | €33,72 |
| Royal Aware | €35,20 | + € 0,60 | €36,81 |
| Dairy Crest (Davidstow) | €35,02 | + € 2,30 | €32,81 |
| value | €34,90 | = | €36,08 |
| Milcobel | € 34,72 | + € 0,80 | €32,66 |
| DMK | €34,59 | + € 0,50 | €34,27 |
| Arla Foods DK | €34,31 | = | €33,79 |
| Savencia (Basse Normandy) | €33,49 | - € 1,50 | €33,88 |
| Kerry Agribusiness | €33,43 | = | €33,62 |
| Muller (Leppersdorf) | €32,96 | + € 1,20 | €33,35 |
| Hochwald Milch eG | €32,93 | = | €34,39 |
| dairy gold | €32,30 | = | €33,40 |
| glanbia | €32,21 | = | €32,81 |
| Other milk processors | |||
|---|---|---|---|
| Emmi | €52,96 | + € 0,50 | €48,23 |
| United States Class III | €34,85 | + € 1,90 | €32,15 |
| Fonterra | €28,70 | - € 1,60 | €30,22 |