Inside Milk
Heat wave in August cuts milk supply
The heat wave in August, one of the longest in national history, caused a significant drop in milk production.
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Dutch milk processors collected 1,14 million tons last month, a decrease of 1,5% compared to the same month in 2019. In July, milk production was still more than one percent above last year's level. The fat percentage was on average 4,25%, which is relatively high. Daily production last month was 36.785 tons, compared to 37.895 tons in July. This reflects the seasonal decline in milk production in Northwestern Europe.
Second warmest month ever
In August it was sweltering for days, where the mercury rose well above 30 degrees Celsius. In terms of average temperature, August was the second warmest in history, the KNMI indicates. Only in 1997 it was warmer. That explains the decline in milk production. In the meantime, according to processors, milk production is picking up again, although the decline in seasonal production will of course continue.
Spot milk scarce
The tight supply made spot milk even scarcer, with prices rising considerably. The DCA quotation for the Netherlands (at 4,4% fat, delivered) rose to €39 per 100 kilos. This is considerably higher than the raw material value of milk, based on the valorization of skimmed milk powder, butter and cheese. Cream and skimmed milk concentrate also rose in price. Due to milder temperatures earlier this month, prices on the liquid market are normalizing.