Inside Milk
Significant tightening of German milk supply in September
The trend of a tightening German milk supply, which has been going on for months, has strengthened in September. Milk production at the eastern neighbors fell sharply during that month.
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German milk supplies fell by 2020 tons compared to September 63.000, reaching a level of almost 2.520.000 tons. That means a decrease of 2,5%. September's milk supply has not been at such a low level in years. The sharp decline in Europe's largest dairy country is leaving its mark on the market.
Below multi-year average
The fact that the decline is of serious proportions is also evident from the fact that milk production has fallen below the five-year average. The average milk production for the years 2016 to 2021 is 2.568.230 tons. The milk supply for September this year is therefore lower by approximately 49.000 tons. Production is therefore 1,9% below this average level.
Dairy market peaks
The tight availability of milk in Germany, among others, has been reflected in the spot market prices for free milk for some time. In combination with a very strong international market for dairy products, milk is in high demand. The price for spot milk is now at a historically high level and peaks in southern Germany at €54,50 per 100 kilos of milk.