Inside Milk
Dutch milk supply drops even deeper
Dutch milk production fell even more deeply in October to levels that were common before the abolition of the European milk quota. The contraction corresponds to the shortage in the liquid dairy market, which has pushed the quotations to great heights.
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Dutch milk processors collected 1.086.227 tons of milk last month, a decrease of 4,2% compared to the same month last year, according to figures from RVO. We can therefore conclude that the decline is increasing month-on-month. In September the difference was still 4% and in August there was a contraction of 1,5%, compared to the same month in 2020. Over the first ten months of this year, the contraction is now 2,3% compared to last year.
Average daily production last month was 35.039 tonnes, compared to 35.483 tonnes in September, reflecting the declining seasonal milk supply. The average fat percentage in milk last month was 4,47%.
Sky-high spot market
Dutch milk production has shown the largest percentage decline in Europe this year, followed by Germany and France. The shortage is clearly noticeable in the liquid dairy market in Northwestern Europe. The DCA spot milk prices for the Netherlands have been comfortably above €50 per 100 kilos for weeks. The German quotations are even higher. Cream prices have also risen sharply, as have the prices for cheese, butter and milk powder.