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Milk price drop gains momentum in September
Under pressure from the deteriorating dairy market, milk prices are falling at an increasingly rapid pace. In August, the average Dutch milk price fell by over one euro, while in September, it was 2,5 times as much.
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This is evident from the average monthly decrease in milk prices, as measured by the Farmgate Index From DCA Market Intelligence. In October, the index price fell by €2,64 per 100 kilos compared to September to €51,77 per 100 kilos.
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In June and July, the index reached its highest point this year, averaging €55,62 per 100 kilos of milk. The index's provisional high was in December 2024, when it reached an index price of €56,27.
Based on price developments in basic dairy products such as cheese, butter, and powders, the index is expected to decline further in the coming months. However, the dairy sector is still passing on the sharply falling prices to the dairy farming sector with a delay.