News Milk
German milk supply remains on the tight side
German milk production in January continues to lag behind that of the previous year. However, the percentage contraction is somewhat smaller than in December.
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German livestock farmers delivered 2.672.480 tons of milk to processing companies in January. That is approximately 59.000 tons less than in January 2021. A decline of 2,2%. Although the milk supply is still on the tight side, the gap has narrowed somewhat compared to a year earlier. Production in both November and December was still about 3% below the level of a year earlier. In September and October the contraction was still 2,5% and 2,3% respectively.
Compared to the five-year average, milk production was approximately 71.000 tonnes lower, which represents a decline of around 2,6%.
Tighter offer than expected
The supply of milk remains tighter than expected. In Germany too, processors regularly have to purchase additional milk or semi-finished products in order to meet contract obligations. It ensures that 'free milk' is still popular and scarce in Germany. The spot milk quotation for Northern Germany is €53,50 per 100 kilograms. Prices for butter and cheese also continued to rise in recent weeks.