Comments on EU milkprices in February and March 2015: the calculated advance milk price in February 2015 averaged € 31.88 per 100 kg standard milk. A decrease of € 0.21 compared to the previous month. Compared to February 2014, this is a decrease of € 9.11 or 22.2%.
Big differences
Most dairy companies have not changed their milk prices in February compared to January. Exceptions are DOC Cheese and FrieslandCampina with increases of € 1.43 and € 1.21 per 100 kg, while the calculated French and British milk prices have dropped. Most notable was the drop in milk price of Hameenlinnan Osuusmeijeri with € -2.73. Since October 2014, the calculated milk price of this Finnish cooperative declined by a total of € 8.56 per 100 kg. In March and April milk prices of Arla (April + 1.55) and FrieslandCampina will increase (March + 2.43, April -0.73 , total +1.70).
Various dairy companies have paid or announced supplementary payments for milk delivered in 2014. The provisional calculated supplementary payments over 2014 in euro per 100 kg are (in () 2013): Arla 1.53 (2.01), FrieslandCampina 2.83 (2.91), DOC Cheese 1.03 (2.31), Glanbia 0.49 and Kerry 0.20.
UK and Scandinavia
Price changes in February 2015 (€ 100 per kg compared to the previous month) and additional information per company:
Arla:-0.04 due to exchange rate DKK versus euro, March unchanged, April +1.55.
The provisional supplementary payment over 2014 is based on a supplementary payment of 4.05% of the basic value (excluding quality bonus). This corresponds to 11.5 DKK or € 1.53 per 100 kg. A part (4.1 DKK) is not paid in cash but added to the member’s capital.
Hameenlinnan Osuusmeijeri: -2.73.
The provisional milk price of January has been corrected from € 41.97 to € 40.52.
Dairy Crest: -0.3. Until June no further price drop.
First Milk: -0.8, March unchanged, April – 1 (A-price).
Ireland and 2014
Glanbia: Unchanged
The milk price of January is slightly adjusted from € 30.50 to € 30.44 due to a changed value added tax (VAT) rate of 5.2% from 1 January (was 5.0%). The calculated milk price for January (VAT excluded) was based on an unchanged milk price inclusive VAT.
Glanbia member suppliers received a coop bonus of € 0.5 per 100 liters of milk delivered in 2014. This payment (€ 0.49 per 100 kg) is retroactively included in the monthly milk prices of 2014 and therefore the rolling average of the last 12 months.
So far, no seasonality (winter) bonuses are included in the calculated milk prices, because additional information is missing.
Kerry: Unchanged
Kerry paid € 0.22 (inc. VAT) on 2014 liters. This milk price adjustment (€ 0.20 per 100 kg, VAT exclusive) is like Glanbia retroactively included in the monthly milk prices of 2014 and therefore the rolling average of the last 12 months.
Holland and grazing
DOC Cheese: +1.4
For 2014 deliveries a provisional supplementary payment of € 1.03 is calculated based on 1% of the advance milk price plus a membership fee of € 0.68.
Retrospective from January 2014 onwards the calculated monthly milk price of DOC Cheese have been adjusted. Based on the recently published annual report 2014 the (average) bonus for outdoor grazing of 0.23 is replaced by a sustainability bonus of (on average) € 0.84 per 100 kg.
FrieslandCampina: + 1.2, March + 2.4 and April -0,7.
With retrospective effect from January 2014, the calculated monthly milk FrieslandCampina have been slightly altered. Based on the recently published annual report the (average) bonus for outdoor grazing is € 0.29 (was € 0.31) per 100 kg.
Others, non-EU
Emmi: +0.3
The increase in the calculated milk price of the Emmi is entirely due to the appreciation of the Swiss franc against the euro. Expressed in national currency, the calculated milk price decreased by 1.33 to 55.72 CHF.
Fonterra: -0.3 Recently Fonterra announced their half-year results. The forecast farm gate milk price for the 2014/15 season remains 4.7 NZD per kg milk solids (fat and protein). The estimated full year dividend is 20-30 cents. Based on a dividend of 0.25 (was 0.30) the calculated milk price of Fonterra is based on 4.95 NZD per kg MS (was 5.0).
Market situation Spring 2015:
Official Dutch dairy quotations (€ per 100 kg),
for period 1/04 , 4/03 and 2/1/2014 :
Butter 318 342 406
Whole milk powder 279 283 379
Skimmed milk powder 201 220 330
Whey powder 81 86 99
After increases in January and February the official Dutch quotations declined in March due to a change in the market since early March. The expectation of increasing supply after the end of the milk quota plus sufficient coverage for the short term leads to a wait and see attitude among buyers.
Thanks to ZuivelNL and EDF.
