The calculated milk prices in August 2014 averaged € 38.50 per 100 kg standard milk. Like the previous month, the average milk prices in August fell again slightly, € 0.19 per 100 kg compared to July. Again, the price changes vary strongly between the dairies. Against many price reductions there are also some price increases. Compared to August 2013, milk prices fell on average € 0.30 per 100 kg or 0.8%. For the first time this year the average milk price is below the level of 2013.
Milkprices in Europe
In August prices of Glanbia, Granarolo and First Milk reduced most by (almost)
€ 2 per 100 kg. Arla, Milcobel and Danone have also lowered their milk prices, but less from -1.2 to -1. Sodiaal (+ 3.3), Hameenlinnan Osuusmeijeri (+2) and Alois Müller (Leppersdorf) (+1) increased their milk prices. The remaining milk prices have remained more or less the same.
August milk price of Milcobel decreased by € 1 per 100 kg. In August the base price (at 4% fat and 3.4% protein)of Alois Müller (Leppersdorf) raised with € 1 to € 35.50 per 100 kg, while the base price of DMK remains € 37.00. DMK has announced to reduce the base price in September with € 2. The calculated milk price of Arla (Denmark) fell in August by € 1.23 to € 37.16 per 100 kg. For September (-1.4) and October (-2) further price reductions are announced.The milk of the Finnish Hämeenlinnan Osuusmeijeri has risen because of the seasonal bonus in August of € 2 per 100 kg.
UK and France
Striking is the increase in the milk price by Sodiaal with € 3.3 per 100 kg. On the other hand the milk price of Danone declined (-1.2), while the calculated milk prices of Bongrain and Lactalis have remained more or less the same. The milk price of British First Milk has decreased in August by 1.25 pence per liter (ppl) or – € 1.8 per 100 kg. For September and October further price reductions are announced with 0.50 and 3 ppl. Including August, these price reductions correspond to a total of € 6.2 per 100 kg. Dairy Crest has also announced to reduce the milk prices by 1.1, 1.75 and 1.3 ppl in September, October and November, together a total of € 5.2 per 100 kg. The slight decrease in August of € 0.20 is entirely due to the increase in the value of the British pound against the euro. In pence per liter, the milk price of Dairy Crest was unchanged in August.
Glanbia has decreased their milk price by € 2, while that of Kerry remained unchanged. Along with the milk statement of August, the Glanbia dairy farmers received a payment of € 2 from the so-called price stabilization fund to compensate for this milk price reduction. This payment is not included in the calculated milk price.
Holland and Switzerland
DOC Cheese and FrieslandCampina milk prices in August changed not (DOC) or very limited (FrieslandCampina +0,24). For September, both companies have announced price reductions of respectively € 3.33 (DOC Cheese) and € 1.70 (FrieslandCampina) per 100 kg standard milk. The milk price of the Swiss Emmi consists of a weighted average of the so-called A, B and C price. Because the B price slightly decreased the calculated milk price dropped, due to the decline of the value of euro versus the Swiss Franc, this decrease is only € 0.04. Without this currency change the calculated milk price would have decreased by about € 0.20 per 100 kg.
Fonterra and NZ
Fonterra has recently released the final milk price over the past milk price year 2013/14. Including a dividend of 10 cents, the price of milk is 8.50 NZD per kg milk solids (MS) or approximately € 40 per 100 kg standard milk. Never before have the dairy farmers in New Zealand received such a high milk price. Along with this good news for dairy farmers, however, Fonterra also announced that the forecast milk price for the current year will be reduced to 5.3 NZD per kg MS. Including an expected dividend of 25-35 cents, the price of milk so far is now 5.6 per kg MS or about € 27 per 100 kg standard milk. A decrease of 34% compared to the previous year.
While New Zealand and European dairy farmers are facing lower prices, the American dairy farmers are benefiting from record prices. In August, the so-called Class III increased further to € 41.54 per 100 kg standard milk.
For more information, see www.milkprices.nl . Thanks to LTO and EDF for sharing these figures.
