Inside Milk
A-ware and Cono united in milk price change
In the first quarter of 2019, milk prices are far from unambiguous. Which direction do A-ware and Cono choose?
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The milk prices for January and February are in opposite directions. For example, DOC Kaas lowered its price in February, while FrieslandCampina actually increased it. A-ware, just like Arla, chooses to... milk price to keep this month the same.
Stable milk prices
The fat price at A-ware for January remains at €3,47 per kilo, while the protein price is €5,06 per kilo. For an annual supply of 800.000 kilos, the price is €32,31 per 100 kilos (including the quality premium of €0,50 per 100 kilos). In addition, dairy farmers can also earn a sustainability premium of €0,50 per 100 kilos.
Cono keeps the milk price for January stable at €35,55 per 100 kilos of milk, based on an annual supply of 800.000 kilos. In December 2018, the milk price was significantly reduced, because the winter premium (€3,25 per 100 kilos) expired that month.
Situation on cheese market
The stable mutation of both cheese makers fits in with the movements on the cheese market. The German cheese price (Gouda 45) moves without direction at a level of €3.000 per tonne. The prospects for the market are still somewhat uncertain, because the combination of skimmed milk powder/butter is more valuable when processing the milk. As a result, less cheese may be produced by dairies.
At the same time, the cheese price is already (historically speaking) at a relatively high level, while the milk supply in Northwestern Europe increases seasonally until June. These developments influence the cheese market, making it still uncertain which direction prices will take. In the short term, dairy traders anticipate stable price developments.
