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The resurgence of dairy prices in Europe over the last two months is now being seen in farmgate milk prices after two of Europe’s largest dairy co-ops announced increases to their June milk price.
FrieslandCampina, the Dutch dairy co-op, announced on Monday it was increasing its June milk price by 0.25c/kg to 34.25c/kg. This is the first increase in Friesland’s milk price since last October. The co-op said it expects other “reference” dairy companies to also increase June milk prices.
Meanwhile, Danish dairy co-op Arla also increased its June milk price by 1c/kg on the back of strengthening dairy markets.
Market sentiment has improved significantly in the last fortnight after the European Commission sold almost 42,000t of skimmed milk powder (SMP) out of intervention.
On European spot markets this week, there were increases across the board for dairy commodities.
Butter continues to trade above €6,000/t as supplies remain tight. Irish butter is trading between €5,800/t and €5,900/t ex-factory.
Cheese prices have risen in the last week with Irish cheddar trading upwards of €3,150/t ex-factory. Spot prices for mozzarella and gouda have also risen to €3,300/t and €3,050/t, respectively.
On the powders markets, the price of whole milk powder (WMP) reported to the Dutch dairy board has risen aboce €2,800/t. Irish-made WMP is selling for up to €2,700/t ex-factory. Spot prices for fresh SMP are trading close to €1,550/t this week, with futures markets pricing SMP for August and September delivery above €1,600/t.
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