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Dairy farmer's return has started to recover
The returns of dairy farmers are gradually starting to rise again. The DCA Dairy Cattle Index is expected to rise above the 10-year average again in mid-April.
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The DCA Dairy Cattle Index fell well below the 10-year average of 100 points last year. In mid-April the index reached a low of 63 points. While fluctuating, the index recovered to 83 points at the end of 2020. This year there is an upward trend in the returns of dairy farmers and the number of points in the index is increasing again.
In January the index rose by 6,3 points. The recovery continued in February, but the index rose less rapidly than in January by 2,8 points. According to the index's forecast, the return will rise further and the number of points will again be above the 10-year average by mid-April.
When the index is compared with the level of previous years, it appears that the index is 6,6% below the level of last year. Compared to the same period in 2019, the index is at a comparable level.
More positive sentiment
The poor returns of dairy farmers last year were partly due to the meager milk prices and the high feed costs also had a major influence. Milk prices are cautiously more positive, although this is not the case with every dairy company. FrieslandCampina, Doc Kaas and Arla have implemented an increase for February. A number of milk processors are keeping prices stable, but reductions are not yet on the agenda for February.
In the dairy market, the more positive sentiment is more clearly reflected in dairy prices. The Global Dairy Trade in New Zealand continued this week 8th consecutive increase in. Prices are also on the rise in the Netherlands, according to the report DCA Dairy Quotes.