European milk price starts the year lower

The average European milk price for January 2019 is €33,85 per 100 kilos, which means that the price shows a decrease of €0,43 compared to December 2018. Compared to the milk price of January 2018, there is even of a decrease of €1,68 (or 4,7%).

Mainly red numbers
De most dairy processors have lowered milk prices for January. The biggest drop is for Müller (-€2,50 to €31,97), who therefore drops from 7th place to last. This price does not include the €1 surcharge for the use of GMO-free feed. The milk price of Hochwald also shows a significant decrease (-€2) and therefore amounts to €32,93 per 100 kilos. Arla is also unable to maintain the milk price in January. This drops by €1,50 to €32,68, causing the dairy to drop to the bottom of the list.

The Dutch dairy cooperative FrieslandCampina records a decrease from €1 to €35,72 per 100 kilos in January, but is still in the top 3. A-ware is no longer included in 2019, because the processor has 4 milk flows (in addition to organic) as of January, with different milk prices. The choice for 1 of the milk flows means that the milk price concerns a smaller volume and therefore has less value for the international comparison. 

Although most companies set a lower milk price, Danone sets a plus of no less than €1,60. The milk price therefore amounts to €34,21, which takes the dairy processor to the top of the rankings. Savencia's milk price is also increasing; by €1 to €35,09 per 100 kilos. The milk price of Granarolo and the milk prices of the Irish dairies have remained the same. 

Forecast for the coming months
It is difficult to estimate whether milk prices will fall further in the coming months. In any case, Arla's milk price will remain the same in February and March, while FrieslandCampina has actually made a small plus in February (+€0,20). This dairy also kept the price stable for March.

French milk prices also hardly change in the first quarter of the year. The Italian Granarolo also leaves the milk price unchanged until February. On the other hand, there are price reductions for the German DMK (-€1) and Irish Dairy Crest (-€1,10) in February. Although the latter does leave the milk price stable for March.