The Dutch milk supply shows a significant increase in August. The stimulating factor of the high milk price apparently drowns out the concerns about the drought and heat.
Milk supply increased by 3,3% last month to 1.162.978 tons, according to figures from RVO. This further accelerates growth. After all, in July the increase was still around 1,5%, while in the preceding months there was a contraction. The contents in the milk are disappointing: 4,21% fat compared to 4,29% in the same month last year. As a result, the fat production 'only' increases by 1,55% to just 49.000 tons. Nevertheless, the supply is considerable, because for August this is even the highest level since 2018.
Stimulating high milk prices
The increase in production is logically the result of the sharp rise in milk prices. Many processors paid a basic milk price of at least €60 per 100 kilos last month. Historically, this is unprecedented, although the (concentrate) feed costs have also risen high. Nevertheless, the margin invites to increase milk production. This trend is not yet an issue in other European countries, where production is often hampered by the extreme drought.
The high precipitation shortages in the Netherlands are also a cause for concern, especially in the eastern Netherlands and parts of Limburg, the situation is sometimes dire. The ample silage stocks provide relief, but this winter could be exciting. After all, the maize is in a sad state in many places and grass growth had virtually come to a standstill until last week. Due to the rainfall in recent days, many fields are changing color again. Unexpectedly, this means that there is still a prospect of a last good grass cut this season. This development will of course determine Dutch milk production in the coming months.