Dutch milk supply ends 2019 with a big plus

Processors in our country collected 1.169.711 tons of milk last month, with an average daily production of 37.732 tons. This is an increase of 3,66% compared to the same month last year. Since August, the milk supply has increasingly moved away from last year. The milk supply in December was 1% below the 5-year average for that month.

It is not surprising that production is increasing. Milk prices have been up again for several months now in the elevator. Moreover, roughage stocks are more than sufficient on many farms. There are only some regional shortages in the Achterhoek, Twente and Friesland, but this is being smoothed out through purchases.

Fat production peaks in December
Fat production amounted to 53.489 tons in December. Although production in December was lower in terms of kilos than in March and May, monthly fat production in December reached the highest level of 2019. This can be seen as a signal that the levels in the milk are high, as also indicated by processors.

Now that the figures for December are known, the balance sheet for the whole of 2019 can also be drawn up. The shrinkage that has been visible since 2017 also continued in 2019. Milk production last year was 13,787 million tons, which is more than 0,5% less than in 2018. The downward trend is therefore leveling off. Fat production last year totaled 608.403 tons, which is 0.4% higher than in 2018. This implies that the levels are on the rise, even over a longer period. The average percentage increased last year to 4,57%.

Processors in balance
Even though production is on the rise again, this is not yet putting pressure on the spot price for raw milk. For many processors, supply is reportedly in balance with production capacity. The DCA spot milk listing was therefore able to hold its own quite easily above €30 during the difficult period around Christmas and New Year. There may be some pressure as production works towards its annual peak in May this spring.