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EU Milk Outlook prices looking stable
May 11, 2017

Milk prices will not change much in the coming months across Europe, according to the latest international milk price comparison published by the Dutch Federation of Agriculture and Horticulture (LTO) and Dutch Dairy Organisation.

The seven-month rise in milk prices across the EU ended in February and March, but FrieslandCampina — one of Europe’s biggest dairy companies — one has announced a price freeze including May, and French companies are also expected to stay at about the same price.

However, Arla is cutting prices in April and May, and Dairy Crest in the UK says it will cut prices from June onwards (1p per litre in both June and July, and the new July price to be paid also in August and September).

According to LTO, more and more dairy companies are making milk prices known earlier, mostly due to agreements with their producer organisations.

For example, Savencia, the second biggest cheese group in France and fifth worldwide, announces milk prices for the next three months every quarter.

According to the LTO milk price comparison, although the EU milk supply in February had fallen more than 1%, compared to 2016, it increased in some member states, notably Poland and the Netherlands.

IFA National Dairy Chairman Sean O’Leary said this week there are many good reasons for 2017 milk price optimism, including the effect of pasture-damaging April storms in New Zealand; and cow culling in the Netherlands, the most dynamic EU country for milk expansion.

He said price uplifts in the last week of April for the main commodities relevant to the Irish product mix have resulted in a milk price equivalent after 5c/l processing costs, of 31.13c/l plus VAT, or 32.8c.

Due to the protein-related price slump, skimmed milk powder production in the EU has fallen 9%, and is no longer a decisive factor in prices, said ICMSA’s Dairy Committee Chairman, Ger Quain, who remains confident on milk price.

 

Source: Irish Examiner


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