Rise in milk price is reflected in dairy cattle index

The Countus Dairy Cattle Index has shown an increase in recent months. This is mainly a result of the milk prices that are on the rise. The outlook for the coming months is also positive.

For almost all of 2018, the dairy cattle index moved below the 10-year average. That the return was somewhat disappointing last year was also apparent from the income estimate from Wageningen University, which was published in December. In the closing phase of 2019, however, the index has passed the 100-point mark again and in January the upward trend continues slowly, reaching 102,50 points in week 3.

The increase is the result of the payout prices that have picked up again at many processors in the Netherlands in recent months. Including bonuses and premiums, some processors even pay more than €40 per 100 kilos. The average bare milk price is now again above the €35 limit per 100 kilos.

The lower feed costs (chunk prices) also contribute to the increasing return, while the DCA manure collection contributions from cattle slurry are also below the long-term average. The index forecast foresees a stable to slightly increasing trend for the coming months.

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Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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