Seasonal bonus kills Danone in milk price comparison

The average milk price in the European Union in October is €33,51 per 100 kilos, which is €0,07 lower than last month. If we compare that price with the milk price of October last year, the price this year is €1,27 lower (-3,6%). The milk price comparison also shows that most milk prices have not or hardly changed. An exception to this rule include Granarolo (+€1,90 to €41,27), Savencia (-€0,60 to €35,28) and FrieslandCampina (-€0,20 to €34,27).

The milk prices of Danone and Saputo Dairy UK also show changes, but depend on seasonal adjustments. Because Danone's dairy farmers no longer receive a seasonal bonus, the processor is dropping sharply. Last month it took third place and is now the French dairyman dropped to seventh place: -€2,80 to €36,64 per 100 kilos. The opposite applies to Saputo. This milk price is €1,20 higher, which is mainly the result of the higher seasonal bonus and an increase in the pound against the euro.

Stable trend
Saputo's milk price also shows the relatively stable development of milk prices in 2019. The dairy company has left the milk price unchanged in the period from February to December (with the exception of seasonal supplements). The milk price of Arla, Granarolo Emmi and FrieslandCampina have also been announced until December. Granarolo's milk price will remain the same for the rest of 2019. Arla's milk price remains stable in November, but drops by €1 one month later. FrieslandCampina's price is €1 higher for November and has been increased by €0,70 for December.

Although these prospects are positive, it is expected that the average European milk price will continue to decline in the coming period. This is based on the data up to and including October. The decline is reportedly greatest among Irish and German dairy processors.