Just prior to Christmas, there was a slight recovery in EU skim milk powder (SMP) and butter prices. Around the same time, there was a deep fall in Dutch spot milk prices, which normally coincides with the Christmas holidays as nobody has any real interest in buying more product from spot markets over the holiday period.

Autumn EU milk deliveries continued to increase and the latest stats show October supplies up 3.9% compared with the same month in 2014. Surprisingly, the continued autumn milk supply increase has prompted the large Dutch processor Friesland Campina to offer a bonus if suppliers reduce or at least hold the same delivery they had in December for the first six weeks of 2016.