FrieslandCampina plummets in milk price comparison

The average European milk price in July amounts to €33,43 per 100 kilos, which is an increase of €0,14 compared to last month. If we compare this with July 2018, the price is €0,41 lower (-1,22%). This means that the price has fallen below the level of the same month last year for the first time since February. It appears that the market will not reach the level of 2018 if there is no recovery.

Major steps in French milk prices
The biggest positives in July are for the French dairy companies, although this is not surprising. Normally these milk prices always peak in the summer months (July, August and September). The price of Danone increases by €2,30 to €37,59 per 100 kilos and thus maintains its second place. Sodiaal rises to fifth place: +€0,90 to €35,70 per 100 kilos.

The milk price of Saputo Dairy UK (formerly Dairy Crest) also showed an increase in July. Due to a seasonal premium, the milk price increases by €2,20 to €32,06 per 100 kilos. Valio's milk price increases due to an increase in the sustainability surcharge: +€1,00 to €35,88 per 100 kilos. The Italian Granarolo has increased its milk price for July by €0,50 per 100 kilos.

Due to the significant increases of many European processors, the cooperative is declining FrieslandCampina from third place to seventh place. The processor reduced the milk price for July by €0,70 to €34,51 per 100 kilos. If we look at the average milk price over the past 12 months, the Dutch cooperative still ranks second (€35,83 per 100 kilos). Müller (-€0,60) and Arla (-€0,10) have also reduced their milk price for July.

American milk price is increasing rapidly
The development of the milk price in the United States is opposite to the European milk price. The American milk price has increased by 27% since January this year. In July, the milk price increased by 8% to €39,49 per 100 kilos. The milk price (class III) is now at the highest level since December 2014. This increase is mainly due to the increased prices of cheese (+33% in 2019).