Dutch milk supply shows an undesirable plus

Production for March amounts to 1,223 million tons, an increase of 3% compared to the same month in 2019. The contents can be described as 'high', with an average fat percentage of 4,52. The average daily production is 39.452 tons, compared to 38.686 in January. The milk supply therefore shows an increasing trend that will continue until May.

Oversupply of liquid dairy
Under normal circumstances, the 3% increase would have been manageable for processors in the Netherlands. And although there are no major problems at the moment, the situation is worrying. There is a large supply of liquid dairy products in Europe, which means that prices have to suffer. Large volumes of liquid dairy products are offered at dumping prices, especially from France, Ireland and the United Kingdom.

French spot milk has been trading well below €20 per 100 kilos for several weeks. In the Netherlands, the DCA quotation has also fallen considerably to €27,50 per 100 kilos. Not the best price, but not as bad as in France.

Milk reduction in Scotland
The British dairy cooperative Müller has asked approximately 250 suppliers in Scotland to quickly limit milk production, as they no longer have sales for the dairy products. It is reported that there is no market for more than a million liters of milk per day in the UK. 

The question is how dairy farmers will approach this request. Taking cows to the slaughterhouse is not possible. Cattle slaughterhouses, for example, are also experiencing problems as a result of corona, as there is little sales for beef products. Milk is already being dumped in some places in the UK.