RFC and Sodiaal allow milk price to rise sharply

The average European milk price increased by €0,20 in August to €32,71 per 100 kilos of milk. Despite the slight increase in July and August, the average is still €0,85, or 2,5%, lower than in the same month last year. Yet there seems to be light at the end of the tunnel. Of the 16 European milk prices, half have increased, with FrieslandCampina and Sodiaal in the lead. Only 2 are down, and 6 are stable.

A euro more
FrieslandCampina recorded one euro more in the month of August. Sodiaal went even further and added €1,10 to the July milk money. Sodiaal's increase is entirely due to a higher seasonal allowance. Sodiaal will leave the milk price at the same level for September.

The outlook is somewhat less sunny for the members of FrieslandCampina. The processor reportedly lowered the price by €0,20. Ultimately this even became €0,25. The expectation that the milk money for October would be increased again by €0,50 has come true.

Positive numbers
Positive figures also predominate for most other milk prices. Lactalis (+ 0,6), Arla (+ 0,5), DMK (+ 0,5), Glanbia (+ 0,5), Kerry (+ 0,4) and Saputo (+ 0,1) are also doing something included in the price. Arla and DMK hereby indicate that they will leave the milk money for September unchanged. Lactalis drops the price by 10 cents in September. The other majority keeps the price for August the same as July.

In addition to the increases and stable prices, there are still 2 processors who have adjusted the milk price downwards for August. This concerns the French processors Savencia (-0,3) and Danone (-0,6). Savencia does not provide any explanation for this, but the processor does say that it has also calculated a decrease (-0,2) for September. At Danone, the decrease is due to a contract on which milk prices are based. The milk price is determined half by market indicators and the other half by cost price developments.

Heavy blow to US milk price
Among international processors, despite a negative correction, the Swiss Emmi is still in the lead with €55,11 per 100 kilos of milk. The correction of 30 cents is due to the price effect. The same applies to the negative correction at Fonterra of 80 cents. The price amounts to €27,13 per 100 kilos of milk. The Spanish CAPSA Food keeps the price unchanged at €31,69.

Of all milk prices, the American Class III price is taking the biggest hit. The price records a negative correction of no less than €11,44. It is not stated where this decrease comes from. The milk price for August amounts to €41,18 per 100 kilos of milk. This is still relatively high.