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Inside Milk price comparison

Milk price RFC still in European average

30 October 2020 - Jorine Cosse - 3 comments

Of all processors in the LTO milk price comparison, Irish processor Dairygold and British processor Saputo steal the show with the September price change. FrieslandCampina, on the other hand, once again has to give up a place in the comparison. 

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The average milk price increases by €0,28 per 100 kilos to €32,99 in September. This leaves the price at €0,79 behind last September. LTO expects milk prices to continue to rise in the coming months, but it is not expected that the negative price difference with last year will be made up for. LTO states that the average milk price for 2020 will lag behind that of 1 by approximately 2 to 2019%.

Loss for RFC
While FrieslandCampina managed to gain a place in the comparison last month, the processor has to recognize its superiority again this month in Hochwald, Germany. While the German processor increases by one euro, RFC reduces the price by €0,20 to €23,72. This gives Hochwald a significant lead with €33,62. The time when Friesland was still in the top 5 has been over since April.

In addition to FrieslandCampina, the French processors Savencia and Lactalis also reduced their milk price with a reduction of €0,20 and €0,10 respectively. Despite the reduction, both processors retain their place in the comparison. Lactalis expects another increase in November, bringing the price above €34 for a long time.

Significant increase in Dairygold and Saputo
The most notable increases are those of the Irish Dairygold and the British Saputo. Normally these processors can be found at the bottom of the rankings, but this month Dairygold in particular takes a few steps up by raising the milk price from €1,10 to €31,87. Saputo remains at the bottom of the list, but after months it has managed to rise above the €30 limit. Due to an increase of just under €2 for September, the processor records a milk price of €30,05.

The other price increases are achieved by Glanbia (+0,40), Müller (+0,40) and Danone (+0,2). The milk price of the Belgian Milcobel remains stable for the sixth month in a row and once again acts as the bottom line. The dairy is the only European milk processor that still charges a price below €30. The company has not yet announced what its plans are for the coming months.

US milk price due to deep trough
The corona crisis is leaving deep marks on the American Class III milk price. This milk price is largely based on cheese prices, which have shown many fluctuations in recent months. The price has fallen sharply since August, from more than €50 per 100 kilos in July to €34,48 in September. The other international milk prices are much more stable. Fonterra will add almost €2 for September, CAPSA will keep the price stable and the Swiss Emmi will take €0,20 off.

European processors September price Difference August Average (12 months)
Granarolo (North) €37,87 = €39,10
Danone (Pas de Calais) €36,70 + € 0,20 €34,78
value €35,88 = €35,88
Sodial (Passe de Calais) €35,83 = €34,75
Savencia (Basse Normandy) €33,97 - € 0,20 €34,44
Lactalis (Pays de la Loire) €33,94 - € 0,10 €34,67
Hochwald Milch eG €33,62 + € 1,00 €33,34
FrieslandCampina €32,72 - € 0,20 €33,78
dairy gold €31,87 + € 1,10 €30,55
Arla Foods DK €31,84 = €32,94
Kerry Agribusiness €31,72 = €31,15
glanbia €31,15 + € 0,40 €30,30
Muller (Leppersdorf) €31,08 + € 0,40 €31,57
DMK Deutsches Milchkontor eG €30,91 = €32,03
Saputo Dairy UK (Dairy Crest) €30,05 + € 1,90 €31,29
Milcobel €28,73 = €30,56
Average milk price €32,99 + € 0,28 €33,17
Other milk processors      
Emmi €54,92 - € 0,20 €52,80
United States Class III €34,48 - € 6,70 €39,73
CAPSA FOOD €31,69 = €31,72
Fonterra €28,77 + € 1,70 €30,83

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