Milk prices throughout Europe to 40 euros

Based on the European Commission's market monitor, the average milk price in Europe increased by 3,5% in November to €40 per 100 kilos. That is unique. Since the turn of the century, this only happened in 2014 and that was short-lived. Milk prices have risen due to the good sentiment on the dairy market. Based on butter and skimmed milk powder, the raw material value (calculated on the weekly quotations) is now above €50 per 100 kilos.

Thanks to low milk supply
If the good sentiment continues in 2022, it is likely that milk prices in Europe will rise further. In the Netherlands, several processors, who announce prices prior to the new month, have now further increased prices for January. The bottom of the milk prices in our country it is now close to €43 per 100 kilos. The revival in the market is due to tight supplies, prompted by the sharply lower milk supply in important production countries.

Although the milk price itself is high, the price increases do not necessarily mean a significant margin improvement for many companies. After all, the costs of feed and energy have also risen sharply. The Irish Farm Association (IFA) announced this week that payment prices this month should be well above €40 per 100 kilos, increasing pressure for further increases.