Inside Milk
Milk supply in the Netherlands just below the 5-year average
Dairy farmers in the Netherlands also produced slightly less milk in November than the 5-year average, the new figures show. On the other hand, for the fourth month in a row, more was produced than last year.
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Dairy processors collected 1,096 million tons of milk in November. This is approximately 3,1% more than was collected in November last year (1,066 million tons). It means that the milk supply for the fourth month in a row above last year's level. The milk was also fatter last month than last year: 4,53% in 2018 versus 4,57% in 2019. Fat production in November amounted to 50.117 tons.
The 5-year average for the month of November is 1,106 million tonnes of milk, which means that this year's milk collection is approximately 0,9% lower. The milk supply is also lower compared to the years 2015, 2016 and 2017. This concerns a negative difference of 1,4%, 1,5% and 4,3% respectively. When we look at the seasonal trend, production is expected to increase slightly next month.
Milk supply versus capacity
From the DCA quotation for spot milk it appears that there are currently no or hardly any surpluses in the Netherlands. In short: the milk supply is reasonably well balanced with the production capacity. Now that the end of the year is approaching, liquid dairy prices are falling further (particularly cream).