Dutch milk processor Friesland Campina has increased its July base milk price by 0.5 c/litre to 33c/l. The price hike comes as other dairy companies in mainland Europe lift milk prices post-COVID-19 reductions. The announcement this week also comes with Irish co-op directors due to meet in the coming days to retrospectively set June milk price for Irish suppliers.

When we convert and compare the Dutch milk price at the same milk solids for July it is the equivalent of €4.53 per kg milk solids. Last week in the May monthly milk league we saw the Irish price average just shy of €4kg milk solids. The 0.53c/kg milk solids difference is equivalent to a difference of over 4c/l. Friesland suppliers typically get a top-up at year end on monthly prices. The last annual top-up was 1.3c/l.

International prices

In Table 1 we compare like-for-like May milk prices for some of the main dairy companies internationally compared to three of the larger Irish milk processors. The Irish trio average just shy of 30c/l for May at 29.7c/l. The French processors Lactalis and Danone are paying almost 5c/l ahead of this, while the Danish company Arla are paying almost 3c/l ahead of the Irish average. The Dutch in May were 2.4c/l ahead of the Irish average, but they have subsequently moved further ahead based on the announcement outlined above for July milk price.

The Fonterra price has little relevance at this time of the year as supplies are tiny from New Zealand as most cows are dry at present. The US price at 27c/l is important because it will significantly slow milk supplies from that part of the world where costs of production are high. The US milk market was hit very bad given it’s dependence on the food service market which collapsed post COVID 19 restrictions.

Read more

Over 1,200 dairy farmers quit supplying Friesland Campina

Holding May promising for June