The calculated advance milk price in October 2014 averaged € 35.76 per 100 kg standard milk. A decrease of € 1.72 compared to the previous month. Compared to October last year, this is a decrease of € 4.31 or 10.8%. Lower selling prices of dairy products are more and more expressed in milk prices paid to the producers.
Western Europe
Notable are the large declines of French milk prices, although this is partly due to seasonal adjustments. British milk prices, especially those of First Milk, are sharply declining. Because the British dairy companies voluntarily agreed to timely publish their milk, is it already known this price decrease will continue in January 2015. Although all the calculated milk prices in October note still over € 30, it is already known that Dutch milk prices in 2014 will fall below, namely in November DOC Cheese € 28.71 and in December FrieslandCampina € 29.97. Since April this year Milcobel has lowered the producer price every month, in October € 1. The calculated milk price of € 31.64 is € 8.40 per 100 kg milk lower than the same month last year.
Germany and Scandinavia
The basic prices (4% fat and 3.4% protein) of Müller (Leppersdorf) and DMK decreased both to € 33 in October. Compared with the previous month, a decrease of € 2.50 and € 2.00 respectively. The calculated milk prices for standard milk for Muller and DMK are € 33.99 and € 33,11per 100 kg respectively. The calculated milk price of Arla (Denmark) fell in October with € 2 to € 33.70 per 100 kg. The milk price of Arla is unchanged in November but will decrease with € 2 in December. Despite these decreases the average 2014 advance milk price of Arla is more than € 1 above the level of 2013.The (provisional) milk price of the Finnish Hameenlinnan Osuusmeijeri is not changed.
France and UK
Except Sodiaal milk prices of the French dairy companies fell in October by about € 4, but with around € 34 to 36 they are still above the European average. That the milk price of € 42.04 with Sodiaal is at a much higher level, probably due to some sort of catch-up effect. In the beginning of the year the milk prices of Sodiaal were significantly lower than those of the other French companies. The milk of the British First Milk decreased by 3 pence per liter (ppl) to – in euros – € 32.40 per 100 kg standard milk. In November, December and January prices will fall further by 0.3 ppl, 1.8 ppl and 1.1 ppl respectively. The calculated milk price of First Milk drops thus in January 2015 to under € 29 per 100 kg standard milk. The calculated milk price of Dairy Crest fell in October to € 40.55 per 100 kg despite a higher seasonal adjustment. In November, the milk is reduced by 1.75 ppl. In December, the price of milk remains the same, but in January a price decrease of 1.25 ppl. Partly due to the expiry of the season bonus the calculated milk price in January will be around € 34 per 100 kg standard milk. Despite the declines in British milk prices, the average 2014 milk prices of First Milk and Dairy Crest will be higher than in 2013, in euros per 100 kg, but also expressed in pence per liter.
Ireland and Holland
Irish companies Glanbia and Kerry have not adapted their milk prices in October. The calculated milk prices of both companies remain € 30.50 (Glanbia) and 32.02 (Kerry). The calculated milk price of DOC Cheese decreased with € 1.4 to € 30.65 in October. In November, the milk price will drop by a further € 2. FrieslandCampina milk price in October decreased to € 35.99. In November (- € 2.5) and December (- € 3.75) prices will fall further. The calculated milk prices of the two Dutch companies will decrease below € 30, namely DOC Cheese in November € 28.71 and FrieslandCampina in December € 29.92. Despite these sharp falls the milk FrieslandCampina’s milk price paid in advance for the whole 2014 is about the same level as in 2013.
Rest of the world
The milk price of Fonterra has not changed, but the calculated milk price expressed in euros slightly decreased due to exchange rate changes. On December 9, the forecast milk price will be updated by Fonterra. Although the price of milk has dropped slightly, the US dairy farmers continue to benefit from relatively high milk prices.
Thanks to Willem Koops from PZ, LTO Nederland and EDF!
