Inside Milk price comparison
US milk price scores high in LTO comparison
The American class III milk price completely flipped in June and increased by more than three quarters compared to the price in May. A number of other milk prices are also rising sharply, at the same time as a number of sharp declines. Just like last time, FrieslandCampina ended up in the middle bracket in the LTO milk price comparison.
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The average advance price for June 2020 will increase by €0,04 to €32,24 per 100 kilos of milk. Nevertheless, the average milk price of June is €1,26 behind the price of June last year. A striking development in European milk prices is the increase at the Irish processors, as a result of which all 3 are again trading above €30 per 100 kilos. The Irish Glanbia is generally the fastest climber. After an increase of €1,50, the price will be €30,29. The next fastest European climber is also Irish Dairygold. This processor adds €1,00 per 100 kilos, bringing the price for June to €30,30.
Peaks and valleys
In addition to a few strong French prices (Sodiaal + €0,90 and Savencia + €0,50), there are also plenty of prices that have started a significant decline. Lactalis, also French, lost €1,10 per 100 kilos on the price, bringing it to €33,39 for June. The processor does indicate an increase for next month. The German processors DMK and Hochwald also deduct (more than) one euro from the price. DMK corrects with €1,50 back to €30,40 and Hochwald lowers the price by €1,00 to €32,63.
Our own FrieslandCampina is also experiencing a significant decrease of €0,50. As a result, the price for June is €31,52 per 100 kilos of milk, which means that RFC remains in the middle bracket in the comparison. The processor is forecasting increases again for July and August. Last month's bottom line are the Belgian Milcobel (€28,73) and the British Saputo (€28,25). Both prices remain below €30, despite Saputo raising €0,20.
American milk price
We mentioned it before, the American milk price managed to increase enormously in June. While it still came in at a meager €27,64 in May, the price for June rose by €18,50 to €46,09, almost three quarters more than in May. Never before has the price increased so quickly. The strong revival is being driven by the high cheese price in Chicago. The class III milk price is mainly used for cheese production.
The other international prices also add up, except CAPSA, which trades right at €31,27. The Swiss Emmi adds an additional €2,70 and is again above €50 per 100 kilos (€51,80). Fonterra increases by €1,10, but does not exceed €30 per 100 kilos (€28,71).
| European processors | Price June | difference may | Average (12 months) |
| Granarolo (North) | €37,87 | = | €39,41 |
| value | €35,88 | = | €35,88 |
| Danone (Pas de Calais) | €34,25 | = | €34,87 |
| Sodial (Passe de Calais) | €34,20 | + € 0,90 | €35,02 |
| Savencia (Basse Normandy) | €33,97 | + € 0,50 | €34,84 |
| Lactalis (Pays de la Loire) | €33,39 | - € 1,10 | €34,93 |
| Hochwald Milch eG | €32,63 | - € 1,00 | €33,49 |
| Arla Foods DK | €32,56 | = | €32,68 |
| FrieslandCampina | €31,52 | - € 0,50 | €34,26 |
| Kerry Agribusiness | €31,27 | + € 0,80 | €30,67 |
| DMK Deutsches Milchkontor eG | €30,40 | - € 1,50 | €32,34 |
| Muller (Leppersdorf) | €30,39 | = | €32,02 |
| dairy gold | €30,30 | + € 1,00 | €30,13 |
| glanbia | €30,29 | + € 1,50 | €29,82 |
| Milcobel | €28,73 | = | €31,36 |
| Saputo Dairy UK (Dairy Crest) | €28,25 | + € 0,20 | €32,20 |
| Average milk price | €32,24 | + € 0,04 | €33,37 |
| Other milk processors | |||
| Emmi | €51,80 | + € 2,70 | €53,00 |
| United States Class III | €46,09 | + € 18,50 | €39,10 |
| CAPSA FOOD | €31,27 | = | €31,35 |
| Fonterra | €28,71 | + € 1,10 | €32,06 |