Monthly LTO International comparison of producer prices for milk
The LTO International milk price development is published monthly. The review LTO International comparison of producer prices for milk is published annually. As from July 2020 onwards the LTO International milk prices are published on this website.
Average milk price July: € 32.51
Compared to June 2020
+ € 0.21
Compared to July 2019
- € 1.12
Prices in euro per 100 kg standard milk with 4.2% fat, 3.4% protein, 1,000,000 kg per year, tbc 24,999 per ml and scc 249,999 per ml, VAT excluded
Average milk price July € 32.51
The calculated monthly milk prices in July 2020 averaged to € 32.51 per 100 kg of standard milk. An increase of € 0.21 compared to the previous month. Compared to June 2019, the average milk price decreased with € 1.12 or - 3.3 %.
Just like the previous month, the average milk price also rose slightly in July. With the exception of Arla (- € 0.7), all dairy companies have increased or not changed their milk prices. The milk price of Danone rose the most, namely by € 1.9 due to a seasonal supplement.
The average milk price is expected to rise also slightly in the coming months. For example, in August the milk prices of FrieslandCampina (+ € 1.0), Lactalis (+ € 0.6) and DMK (+ € 0.5) rise. In addition, the milk prices of Granarolo and Arla (also in September) remain the same. The calculated milk price of Saputo Dairy UK will also remain unchanged in August, but will increase in September due to the expiry of the seasonal levy. The registered producer organization Dairy Crest Direct (DCD) and their milk buyer Saputo Dairy UK have not reached an agreement on the September milk price. DCD argued for an increase given the boom in retail cheese sales in English supermarkets. However, to DCD's disappointment, Saputo has decided to leave the milk price unchanged. With the exception of the Irish dairy companies, Capsa and Valio, all milk prices are lower compared to July 2019. The calculated milk prices of Kerry (+ € 1.3), Glanbia (+ € 0.6) and Dairygold (+ € 0.5) have increased as well as Capsa (+ € 1.0), while the July milk price of Valio is the same as in the previous year. In fact, the monthly milk prices of Valio have not changed at all since July 2019.
Outside the EU, milk prices of the Swiss Emmi (+ € 3.6 due to seasonal supplement) and in the United States have increased. In the United States there are extreme fluctuations in milk prices (see also the notes in the publication of May milk prices). The class III milk price has more than doubled in just two months, namely from $ 12.14 in May to $ 24.54 per cwt (= 45.36 kg) in July. But as prices rise it is not a surprise they will also fall again. Based on the most recent CME Class III milk future settlements it is to be expected that the class III milk price will decrease to around $ 19.6 per cwt in August and between $ 17 and $ 18 per cwt the rest of this calendar year.
Development of milk prices in the United States
Due to the COVID-19 crisis, the selling prices of, among other things, cheese have started to fluctuate enormously ion the US. This is expressed in the so-called class III milk price, which is based on milk that is processed into cheese. Although the class III price is normally a good indicator of the development of milk prices paid in the US, it must be emphasized that the class III milk price is not equal to the average milk price farmers receive. The main difference is that there is a regional pooling of the different classes of milk (classes I, II, III and IV). This usually leads to a higher average milk price, because, for example, the class I price (based on fluid milk products) is mostly higher than the class III price. However, because the extreme rise in cheese prices has only been followed sparingly by higher prices in the other classes, this pooling is currently not leading to a higher, but rather a much lower average price. The US government (USDA) also collects the milk prices received (mailbox prices) and publishes averages for all milk. The national average of the all milk price rose in June to $ 18.10 per cwt or 33% compared to May. For comparison, the class III milk price increased by 73% to $ 21.04 in this period.
Read the full report in the monthly overview.
The monthly milk price comparison is published on Friday at 12 noon CET
2 October 2020
30 October 2020
27 November 2020
8 January 2021
29 February 2021
Annual review LTO International comparison of producer prices for milk
It is a tradition for ZuivelNL to carry out an international comparison of producer prices for milk behalf of LTO Nederland each year. The report provides insight into the development of milk prices based on production and consumption in the Netherlands and surrounding countries.LTO International comparison of producer prices for milk 2019
Overview LTO International comparison of producer prices for milk from 2014
Overview of the annual and monthly reports.Overview from 2014
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Copyright and liability
This milk price comparison is carried out by ZuivelNL on behalf of LTO Nederland and in collaboration with EDF (European Dairy Farmers). The basis for the comparison is the milk money bills of dairy farmers.
Copying data from this publication is permitted, provided the source is acknowledged from the LTO International Milk Price Comparison. ZuivelNL accepts no liability for any damage resulting from the use of the results of this publication.