The calculated advance milk price in December 2014 averaged € 32.95 per 100 kg standard milk. A decrease of € 1.15 compared to the previous month. Compared to December last year, this is a decrease of € 7.12 or 17.8%.
Holland and UK
The calculated milk price of DOC Cheese reduced most by € 3.84 In December , followed by FrieslandCampina € 3.64. FrieslandCampina announced a further decrease of the guaranteed price for January (€ 0.50), but for February an increase of € 1.25. Based on a voluntary agreement British dairies announce their milk price a month before delivery. Thus, at the end of January the milk prices of Dairy Crest and First Milk are known until March. The calculated milk price of Dairy Crest declines in the coming months with a total of 3.95 pence per liter (ppl) or about € 4.80. In addition to these price reductions a so called ‘milk price floor’ will apply form March until June, which means no further price reductions in these months. A previously announced price drop by was partially reversed by First Milk, but the members have to contribute additional capital to the coop and the payment of the milk money has become structurally 14 days later.
Winter in EU
The calculated milk price of Arla drops in January with € 2.47, while it remains the same in February. The milk of the German DMK falls by € 1 in January and that of the Italian Granorolo with € 2.76. In December, the USA milk prices are incidentally the most fallen. About the calendar year 2014, the monthly milk prices calculated increased on average with € 0.74 (+ 2%) compared to 2013. It should be noted these prices are not the definitive milk prices as no supplementary payments are included. This is mainly due to increased British (strengthened by the falling euro exchange rate against the British Pound) and French milk prices (see table). Additional graphs show the development of the monthly milk prices of the individual dairy companies.
MARKET SITUATION
Official Dutch dairy quotations (€ per 100 kg)
4/02/15 2/1/2014
Butter 307 406
Whole milk powder 248 379
Skimmed milk powder 200 330
Whey powder 84 99
And 2015?
Contrary to the expectations, the dairy commodity prices have risen in recent weeks. However, it is still too early to conclude that this is structural. The price trend seems to be strongly influenced by positive results of the recent Global Dairy Trade auctions. In addition, the weakening of the euro against the dollar makes European dairy products more competitive with other dairy regions in the world. Finally, dairy farmers in Europe seem to slow down production to avoid the future payment of the super levy.
Thanks to Willem Koops and ZuivelNL.
