The value of milk rose by 6 euros in a few months

According to the agency, the raw material value of milk (from farm, at 4% fat and 3,4% protein) increased last month by €0,40 to €36,10 per 100 kilos. This is the highest level since July 2018. Since August, the value of milk has already increased by €6.

Valorisation of powder and butter
The calculation is made on the basis of the valorization of skimmed milk powder and butter. The price of skimmed milk powder in particular has shown a strong increase in recent months. The butter price, on the other hand, has been relatively stable for a long time.

Not only butter and powder are yielding better, but cheese prices also rose in the fourth quarter of 2019. In the short term, the rising raw material value seems to be stretching out, given that dairy prices are moving mainly flat at the beginning of 2020. 

Bargain price milk
Milk prices are also rising, but less rapidly than the raw material value. This makes it likely that processors will implement further increases in the coming months. This is also the expectation Rabobank has.

The spot prices of raw milk are also rising again in early 2020. For example, the DCA spot milk quotation in the Netherlands rose yesterday (9 January) by €0,50 to €33 per 100 kilos. This is considerably higher than the 5-year average. Moreover, during the usually difficult Christmas period, the quotation easily held up well above €30 per 100 kilos.