European milk prices a model of stability

The average advance milk prices for January 2020 are an average of €33,89 per 100 kilos of standard milk. This is a decrease of €0,14 compared to the previous month. This is a response to the adjusted average milk price for December to €34,03. The correction is due to corrections to the milk prices at DMK and the Irish Dairygold.

Declining lines
The largest decrease is recorded by the Italian Granorolo with €1,90 to €39,33 per 100 kilos. This means that the price remains in pole position within all European prices. Two other big decliners are Saputo Diary UK (- €1,80) and FrieslandCampina (- €1,30) to €33,95 and €34,63 respectively. The American milk price (class 3) also drops sharply from €5,00 per 100 kilos of milk to €38,39. This is a follow-up to the decrease in December 2019. The significant decrease at Saputo Dairy is due to the expiration of the seasonal supplement, LTO reports.

It is expected that Saputo Dairy prices will also fall in February (-€0,80) and March (-€0,60), but will then remain stable until June. Other prices where changes are expected in the next 2 months are those of FrieslandCampina (+€0,70 in February, -€0,20 in March), Arla (February unchanged, March: +€1,00) and Savencia (February unchanged and in March: -€0,50).

Some climbers
The risers this month are DMK (+€0,20 to €32,68), Sodiaal (+€0,60 to €34,78), Danone (+€0,80 to €33,96) and Glanbia (+ €1,40 to €32,52). At DMK the price for February remains unchanged, for the other 3 this is so far unknown. The other European milk prices have all remained unchanged.

Foreign milk prices
There is no stability among other foreign milk processors. For example, the price of the Swiss Emmi continues to rise by €1,40 to €54,59 per 100 kilos of milk and Fonterra notes a small increase from €0,10 to €33,91. The price of Emmi is thus making its way back to the high price of November. Fonterra's price for January is well higher than for the whole of 2019. Above we already mention the rough decrease of €5,00 that can be seen in the American Class III, which brings the price for January to €38,39.

It is expected that milk prices will generally remain stable in the coming months. In view of the outbreaks of it coronavirus there may be some downward pressure on milk prices later this year. The dairy market has been gloomy in recent weeks.