Inside Milk
French dairies are stirring on the spot market
Due to a fire in a chemical factory in Rouen (in the north of France), the milk of 200 dairy farmers cannot be processed into dairy for consumption. French processors are therefore forced to get their volumes elsewhere.
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Last week, a factory of American chemical giant 'Lubrizold' went up in flames. There is therefore a harvest ban in an area around this factory, because harmful substances may have ended up on the fields. The milk produced in this region has also been rejected by the French authorities. This reportedly concerns about 200 to 300 dairy farmers.
Milk processors such as Lactalis and Danone no longer have any supply and are therefore forced to turn to the spot market. The price of French spot milk has therefore risen to approximately €40 per 100 kilos. It is not yet known when the area will be released again.
Spot milk stable, plus for cream
The French urge to buy is also noticeable elsewhere in Europe. The volumes offered are thin, although this is also because milk production is in a seasonal trough in many regions. In the Netherlands, the DCA quotation for raw milk (4,4% fat) stabilizes at €36 per 100 kilos. In the north and south of Germany, prices (3,7% fat) are €35 and €37 per 100 kilos respectively.
The prices of cream and skimmed milk concentrate have shown a slight increase. In the case of cream, this is partly due to the relatively high butter price (€388) that dairy processors agreed with the German supermarket chain Aldi for the month of October. The DCA quotation for cream increases by €50 to €4.350 per tonne. The quotation of skimmed milk concentrate is supported by rising skimmed milk powder prices and increases by €50 to €2.100 per tonne.