Danone makes a big jump in milk price comparison

The average European milk price in June is €33,29 per 100 kilos, which is an increase of €0,09 compared to last month. When we compare the price with June 2018, it is currently €0,66 higher (+2%). Although the milk price is still higher than last year, the difference is decreasing. Moreover, milk prices are much more stable this year than in the first half of 2018.

Little movement in milk prices
Most dairy companies have kept milk prices stable for June at the May price. Only the milk price of Saputo Dairy UK, which was previously Dairy Crest, shows a decrease (-€0,40 to €29,91), although this decrease is entirely due to the euro-dollar exchange rate. The milk prices of the French Sodiaal and Lactalis increase by €0,20 to €34,83 and €34,70 per 100 kilos respectively.

The largest price increase is in June for Danone. The French dairy processor has increased by €1, bringing the milk price to €35,34 per 100 kilos. The dairy farmer thus rises from seventh to second place. FrieslandCampina follows in third place with an increase of €0,50 to €35,24 per 100 kilos. The Dutch dairy cooperative collapsed last month still out of the top 3.

Variation for July
Typically, milk production declines in June (after a seasonal peak in May), resulting in rising prices. This year, however, the development of prices is more stable, which raises the expectation that prices will move sideways more often this season; DMK's milk price for July remains the same. In addition, the quotations for butter and skimmed milk powder have fallen. This also makes it unlikely that milk prices will rise in the coming months. At least not to the same extent as in June and July 2018.

FrieslandCampina and Arla have even reported price reductions for July. Arla's milk price drops by €0,10 in that month and that of dairy company FrieslandCampina by €0,70 per 100 kilos. On the other hand, the milk price of these dairy companies remains stable in August. On the other hand, the French Savencia has increased its milk price for July by €1. However, here too the price for August and September is stable.