Analysis Milk
German milk supply was also tight in October
The German milk supply did not recover in October from the weak result achieved in September. The volumes produced were again significantly below the level of a year earlier.
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Production in September was about 2,5% lower than last year. There was no recovery in October, because in that month the milk supply had to lose approximately 2,3%. This concerns a volume decrease of approximately 59.000 tons, to 2,55 million tons. Last year, the milk supply for the month of October was 2,61 million tons.
The sharp decline in milk supply is also reflected in declining production; which is now well below the 5-year average. Over the past five years, an average of 2,59 million tons of milk was produced in October. The quantity of milk supplied to processors this year was 48.000 tonnes (or 1,8%) below the multi-year average quantity for October.
Spot milk quite stable at high levels
The tight milk supply ensures that spot prices for milk in Germany remain at a historically high level. Free milk is sought after and is well paid. The quotation is widely used to settle milk flows between dairies. Free milk has been paying well above €50 per 100 kilos in Germany for months.