German dairy farmers supplied less milk in July this year than in July 2020. It is not the first time this year that milk production has fallen below the spring level. Milk supply has been below last year's levels for almost the entire year.
In July, German milk processors collected a total of 2.764.540 tons of milk. That was more than 33.000 tons (or 1,2%) less than in July last year. The volumes supplied are also slightly below the 5-year average levels. This amounts to 2.778.350 tons of milk for the month of July. The total milk supply for 2021 so far is 19.155.880 tons. That is 1,5% less than the 19.461.690 tons in the first 7 months of last year.
High spot milk prices
The slightly downward trend in supply figures also appears to have an impact on the prices for freely available milk. The DCA Spot Milk North Germany quotation in week 36 is €45 per 100 kilos. This is the highest level since the autumn of 2013. A slightly shrinking supply of milk in times of strong international demand is pushing the price up considerably.
The average payment price for farm-gate milk in June was still €35,47 per 100 kilos at 4.0% fat and 3,4% protein, according to the statistical office of the German Ministry of Agriculture.