The calculated advance milk price in June 2015 averaged € 30.64 per 100 kg standard milk. A decrease of € 0.20 compared to the previous month. Compared to June 2014, this is a reduction of € 8.44 or 21.6%. Although the calculated average milk price decreased for the 12th consecutive month, the price is still obviously higher than in 2009 when a historical low was reached. In the second quarter of 2009 the average milk price was around € 25 per 100 kg.
Decrease again
While milk prices from April onwards usually begin to increase, this year milk prices continue to decrease gradually. Facing some seasonal price increases most dairies decreased the prices. The calculated milk prices of DOC Cheese and Glanbia even dropped below € 26 per 100 kg.
The differences are large as the French milk prices remain above € 31 per 100 kg.
For the coming months, further price cuts are expected. The calculated milk price of Arla Foods and FrieslandCampina will fall in August to below € 28 per 100 kg.
Price changes
Price changes in June 2015 (€ 100 per kg compared to the previous month) and additional information per company:
Milcobel: unchanged (for the 4th consecutive month)
Arla: -1.0, July -0.9 and August – 1.0 taking the price to € 27.9 per 100 kg.
Hameenlinnan Osuusmeijeri: (provisional) + 2.0 (due to seasonal adjustment)
Bongrain: +2.0
Danone (A-price): + 0.9
Lactalis: unchanged
Sodiaal (A-price): +0.2
Dairy Crest: +0.4 (due to seasonal adjustment), July unchanged, August + 0.5 (+ 0.25 pence per liter)
First Milk (A-price): +0.3, July -1.3 (-1 ppl)
Glanbia: -1.5, milk price exclusive of coop support (2 cent per liter)
Kerry: unchanged
Dutch prices vs. Fonterra
DOC Cheese: -3.0
FrieslandCampina: June -1.5, July – 0.5 and August a reduction of – 1.5 to € 27.7 per 100 kg.
Fonterra: +1.5
Fonterra announced their opening forecast milk price for the 2015/16 season of 5.25 NZD per kg milk solids. This opening milk price is higher than the milk price in the past season (forecast 4.40 exclusive of dividend), but much lower than milk prices in previous years.
Market situation
Official Dutch dairy quotations (€ per 100 kg) :
5/8/2015 1/7/2015 2/1/2014
Butter 269 294 406
Whole milk powder 187 222 379
Skimmed milk powder 166 172 330
Whey powder 53 59 99
The most recent price quotations are about 20 to 30% lower than in the first week of August last year. Except for skimmed milk powder the current prices are still at a higher level than in the year 2009 when dairy prices were historically low.
Thanks to Willem Koops of ZuivelNl ( www.milkprices.nl ).
