Discover how stabilizing supply is driving up European milk prices. Will this trend continue? Dive into our insightful analysis to find out more.
With a fresh spring in their step, nearly all European dairy companies offered a higher payout to their suppliers in March, compared to the colder month of February. The wave of change swept across the continent lifting the average European advance milk prices to an impressive 44.47 Euros per 100 kg in the month of March, offering a gainful increase of 0.39 Euros against the preceding month. This eye-opening detail is illuminated from the international milk price comparison conducted jointly by EDF and ZuivelNL, featuring sixteen heavyweight European dairy companies.
Compared to 2023, milk prices have taken a dip by 3.63 euros or a substantial 7.5 percent in March
This decrease, however, did not stand in the way of some notable highs! With a robust plus of 1.50 Euros, it was the German dairy giant Hochwald that signed off on the highest milk price increase in March. On the flip side, the French Sodiaal and the British Saputo Dairy UK were the only members of this stellar line up to lower their milk price. Interested in the full milk price comparison for March 2024? If so, click here!
Now for the nitty-gritty! These prices are applicable to an average supply of 1 million kg of milk boasting 4.2% of fat and 3.4% of protein. Such supply should have a germ count of up to 24,999 and a cell number up to 249,999. It’s also worth noting that these prices are quoted exclusive of VAT.
On a different note, the European milk supply landscape underwent a noteworthy change in its dynamics. For the first time after a few turbulent months, the European milk supply found its footing and became stable in February, this factoring in the leap year correction. The French dairy market registered a small, yet encouraging increase in its milk supply, while Germany held its ground. Poland, on the other hand, continued to display powerful growth.
Ireland, however, followed a different track with a 16 percent drop in milk supply in February
The same downward trend was also observed in the Netherlands, where the milk supply struggled to pick up the pace. From the fall period of September, the country’s milk supply has followed a downward trajectory. This trend was maintained in March, as dairy intake dipped by 1.3 percent. Industry insider ZuivelNL attributes this slump to the unfortunate outbreak of the Bluetongue virus and the ongoing grading of the derogation, which in turn led to farmers keeping fewer cows.
