News Milk
Milk supply in the Netherlands is rising again after all
Milk supply in the Netherlands continued to grow in March, putting pressure on the spot market for raw milk. Surpluses are mounting while processing capacity is being utilized to the maximum. Read more about the development of milk supply and its impact on the market.
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Dutch dairy producers collected 1,26 million tonnes of milk last month. Compared to the same month a year earlier, this is an increase of 5,97%. However, the average fat content in the milk was slightly lower.
In February, the growth in milk supply dropped back to 5,49%, but in March a larger year-on-year increase is visible again. In the first quarter, milk production amounted to 3,60 million tonnes. That is 5,8% more than in the same period last year.
Very low spot milk prices
Never before has milk supply in March been as high as this year. This is putting pressure on the spot market for raw milk. The DCA benchmark for raw milk in the Netherlands dropped back to €11 per 100 kilos in recent weeks and fits into the payout prices, including premiums, approximately four times.
Factories with surpluses therefore incur significant losses when selling them on the spot market. However, this is sometimes necessary because processing capacity is being utilized to the maximum, processors indicate. The fact that various factories have closed in recent years is having a keen impact.
Peak supply
Daily production rose to over 40.000 tonnes last month. Normally, supply reaches its highest level at the end of April or beginning of May. Various processors indicate that this point has not yet been reached.
In France, the tipping point has already been passed, according to the weekly supply figures from FranceAgriMer.
