Inside Milk
DCA Dairy Cattle Index: stable return
The return of dairy farms showed a fairly stable picture after the increases in the first 3 months of the year in April. The index fell slightly from 103,2 points in the first week of April to 100,6 points in week 17.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
After several months of significant increases, the market now seems to be taking a breather. Measured from the low point - the index kicked off the year 2021 at a score of 81,6 points - the DCA Dairy Cattle Index managed to gain 19 points this year.
Increase in dairy products stabilizes
The increase in the DCA Dairy Cattle Index in the first months of 2021 was mainly due to the strong price increase of dairy products. In its wake, milk prices also rose. The value of butter and milk are the most important indicators in the dairy cattle index. After Easter, the price for butter in particular corrected somewhat. This dropped from €4040 per tonne in week 13 to €3920 per tonne in week 17.
Milk prices have risen. All dairy farmers who have announced the milk price for April so far showed a plus. The Global Dairy Trade auction, which well reflects the underlying value of dairy products, showed a reasonably stable price trend in April.
On the cost side, feed prices are once again showing a strong increase. The price of standard A-brok has been increasing since October and also increased in April €0,55 more expensive again. The discharge prices for liquid manure were quite stable. Depending on the location, these cost between €11,50 and €14,50 per tonne at the end of April. The highest prices are paid in the south.
Forecasts not bad
Further recovery appears to only be possible when corona restrictions are relaxed. Milk supply in the European Union was below the 2021 level in the first months of 2020. A tighter supply of milk can lead to positive impulses for milk prices when demand increases when the catering industry reopens.
