Find out why European dairy farmers are thrilled about record-high milk prices in June 2024. How will this affect their farm’s earnings? Read more.
Summary: European dairy farmers are seeing record-high milk prices in June 2024, largely due to increased valuations of fat and protein in milk. This price spike provides a boost to the industry, yet variations in milk supply growth across different regions present unique challenges and opportunities. Continuous monitoring of these trends will be vital for understanding their broader impact on the dairy sector.
- Average milk price in Europe reached 44.73 euros per 100 kg in June 2024, the year’s highest.
- The increased milk price is primarily due to the higher valuation of fat and protein in the milk.
- Milk prices have remained stable, fluctuating around 44 euros per 100 kg since January 2024.
- Milk supply in Europe grew by 0.8% in May 2024, with Poland leading the growth at 4%.
- Germany also saw an increase in milk supply, while Ireland experienced a smaller decrease.
- Contrarily, milk production in the Netherlands fell by more than 2% in June 2024, with a 1.4% decrease in the first half of the year compared to 2023.
European dairy farmers are rejoicing as milk prices in June 2024 hit an all-time high with an average price of 44.73 euros per 100 kg of milk, marking the highest price recorded this year. The increase, attributed to higher valuations of fat and protein content, saw a rise of 0.65 cents since the beginning of the year and reflects unparalleled stability in milk prices.
The average milk price saw an increase of 0.65 cents from the previous month. Compared to June 2023, the current price is now 2.34 euros higher, according to the milk price comparison by EDF and DairyNL. This rise in prices is a significant boost for dairy farmers across Europe.
The stability of European milk prices has been notable this year. Dairy enterprises started 2024 with a milk price of 43.64 euros per 100 kg of milk. Since then, prices have hovered around 44 euros per 100 kg. The increase in milk prices is primarily due to the higher appreciation of fat and protein content in the milk. However, French and Spanish dairies have kept their prices stable or have seen slight decreases.
Poland continues to lead in milk supply growth, with a 4% increase in May. German dairy farmers have also increased their milk supply. In contrast, Ireland’s milk supply has been lagging, although the decline has been less severe in recent months. Overall, the total milk supply in Europe increased by 1.1% in the first five months of 2024.
The Netherlands presents a different picture, with a decrease in milk supply accelerating slightly. In June, the country saw a decline of more than 2%. For the first half of the year, the Netherlands produced 1.4% less milk compared to the same period last year.
The record-high milk prices in June 2024 bring a wave of optimism for European dairy farmers. The increase in prices, driven by higher fat and protein valuations, offers a much-needed boost to the industry. However, regional disparities in milk supply growth highlight the varying challenges and opportunities across Europe. As the year progresses, it will be crucial to monitor these trends and their impact on the dairy sector.
Learn more:
- Stabilizing Supply Propels European Milk Prices
- Will the Surge in Milk Prices Last? Analyzing Trends and Future Outlook
- US Dairy Farmers’ Revenue and Expenditure Rise Slightly in March
