Often red figures in milk price comparisons

The average European milk price for April 2019 is €33,21 per 100 kilos. This means that the milk price is €0,30 lower than in XNUMX March 2019. However, compared to the same month last year the milk price is actually €0,85 higher (+2,6%). The decline in the European milk price is mainly due to the seasonal effect.

Seasonal charges
The largest price drops occurred in April at Dairy Crest, Sodiaal and Milcobel. There, milk prices fell by €2,70, €1 and €1 per 100 kilos respectively. At Dairy Crest and Sodiaal, this decrease was entirely caused by a seasonal levy. FrieslandCampina showed a decrease of €0,40 in April, but still managed to remain in second place.

However, not only price drops were visible in April. For example, the Italian Granarolo has increased its milk price by €1. Danone (+€0,40) and Savencia (+€0,30) also showed a small price increase in April. Valio, Müller, Hochwald, DMK and Glanbia left the milk price unchanged in April.

American milk price climbs out of trough
In the United States, milk prices are clearly climbing out of a trough. Milk prices for Class III are showing an increase for the third month in a row (+€2,20). This increase is caused by higher prices for milk protein.

Fonterra, on the other hand, has its price forecast for 2018/2019 correct down adjusted. Without exchange rate effect, this corresponds to a decrease of €0,80 per 100 kilos. For the new season, which starts in June, the dairy has presented a milk price range of $6,25 to $7,25 per kilo of milk solids.

Stable expectations
The price picture is expected to remain virtually stable in the coming months. For example, FrieslandCampina and Arla have announced no or limited price changes for those months. Arla's price remains unchanged in May and June, while FrieslandCampina increases the price by €0,70 in June after a reduction in May (-€0,50).