Inside Milk
Dutch milk supply increases lead
Dutch milk supply showed growth in October for the third month in a row. The milk is also fatter than last year around this time of year.
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Dairy processors collected 1,130 million tons of milk last month. This is an increase of 2% compared to the same month in 2018. This means that milk production shows an increase. In the 2 months before this, the lead was 1,65% and 0,8% respectively. The supply is still slightly below the 5-year average.
The average daily production last month was 36.482 tons. With an average fat percentage of 4,49%, the milk was slightly fuller than in 2018. Fat production amounted to 50.746 tons in October.
No surpluses or shortages
The Dutch processors indicate that the current supply is reasonably in line with the production capacity. There are no surpluses. Although, given that we are moving towards the trough of seasonal milk supply, this is not a big surprise. The processors who purchase additional milk do so at prices just above basic payout prices lie. The DCA quotation for spot milk has been stable for 7 weeks in a row at €36 per 100 kilos.
In view of rising milk prices and falling chunk prices, it is expected that milk production will expand its lead in the coming months. This is because dairy farmers reportedly have sufficient phosphate space and therefore do not have to slow down milk production.