Milk price comparison fairly stable over February

The average milk price in the European Union in February amounts to €33,98 per 100 kilos, an increase of €0,21 compared to a month earlier. It is the ninth increase in a row. Since May 2020, the milk price has increased by €1,80 per 100 kilos, a percentage increase of 5,6%. If we compare the average European milk price with the same month last year, a gap of €0,22 is visible (-0,6%).

Glanbia shows largest increase
The Irish dairy processor Glanbia showed the largest increase in February. The milk price increased by €1,10 to €35,98 per 100 kilos. The increase can be entirely attributed to higher fat and protein values. If the seasonal supplement had not been reduced, the milk price of this dairy would have been even higher. Also Kerry Agribusiness (+€1 to €33,45), Saputo Dairy UK (+€0,70 to €34,10), FrieslandCampina (+€0,70 to €34,16) and Dairygold (+€0,70. 36 to €XNUMX) showed a big plus in the second month of the year.

The largest decline was in the German Hochwald. The milk price at this processor dropped by €1 to €32,90 in February. Savencia and DMK also recorded a decrease: a decrease of €0,20 to €34,60 per 100 kilos and €0,50 to €31,32 per 100 kilos, respectively. Since there are few negatives visible in the LTO Milk Price Comparison this month, it has a major impact on their position in the rankings for these dairy farmers.

If we look at milk prices outside the European Union, the largest movement is made by the Swiss Emmi. The dairy processor recorded a decrease from €3,60 to €48,13 per 100 kilos. This decrease is mainly due to a seasonal discount. In the United States, the Class III milk price fell by €0,50 to €31,98 per 100 kilos. In New Zealand the signals are positive and the milk price was increased by €1,80 to €34,58 per 100 kilos.

cautious optimism
The market developments do give reason for cautious optimism when it comes to the development of European milk prices. On the one hand, because there is a prospect of recovery of society and everything that goes with it (such as opening the catering industry) and on the other hand, because of the development of the milk supply. This does not yet indicate a major imbalance between supply and demand.

The positive sentiment is also reflected in a number of milk prices. For example, Arla has announced that it will increase the milk price in March (+€0,50) and in April (+€1,50). FrieslandCampina also saw an increase in both March and April. These are increases of €0,20 and €0,70 respectively.