Glanbia takes steps through seasonal allowance

The average milk price in the European Union in December amounts to €33,53 per 100 kilos, a plus of €0,16 compared to the month before. If we compare this price with the milk price of December 2019, the price last December was €0,66 lower (-1,9%). Now that all milk prices for the year 2020 are known, it can be concluded that the average advance price that year was 2% lower than in 2019.

Few changes
The milk price comparison shows that most milk prices are unchanged. An exception are Sodiaal (+€0,10 to €34,94), Müller (+€0,05 to €32,61) and FrieslandCampina (+€0,90 to €34,09). The largest increase is for the Irish dairy processor Glanbia. This represents a plus of no less than €2,60 to €34,21 per 100 kilos. This raises the dairy farmer to the top of the ranking. It should be noted, however, that this increase is mainly due to the seasonal surcharge.

There are also declines. For example, as a result of a seasonal discount, Danone's milk price is reduced by €1,30 to €33,46 per 100 kilos. With this, the French dairy company drops from fourth place to ninth place. The milk price of Saputo Dairy decreased by €0,40 in December to €32,84 per 100 kilos. This is largely due to the depreciation of the British pound against the euro. It costs the dairy processor two places in the LTO milk price comparison.

If we look at the milk prices outside the European Union, we see that the American Class III in particular has had to give up. The price drops by €16,33 to €31 per 100 kilos. The milk price of the Swiss Emmi falls by €0,30 to €52,23 per 100 kilos. This is entirely the result of a depreciation of the Swiss franc.

'Future difficult to estimate'
"It is difficult to estimate the milk price development for the next two months," write the compilers of the ranking. "Although the dairy market has clearly improved, the picture of milk prices in January and February is mixed." For example, Arla and FrieslandCampina have already announced that they will lower the milk price in January, by €1,20 and €0,90 per 100 kilos respectively. On the other hand, these dairy farmers have declared an unchanged and increasing milk price (+0,70) for February.

The milk price of Milcobel increases by €1,40 in January, while the milk price of Saputo Dairy remains unchanged until March. "And although the milk price of the Swiss Emmi will rise in January and February, the calculated milk price will still fall in February due to the seasonal levy. In short: the milk prices show a varying picture."