Dutch dairy prices soar
Dairy commodities saw butter prices soar at this week’s Dutch auction with an increase of €350/t (up 7.42%) to bring prices to €5,070/t.
Growing demand for butter has been driving the dairy markets in the EU, US and New Zealand in recent weeks. Cream prices are also benefitting from growing demand for butterfat.
Whole milk powder prices rose by €80/t this week to €2,950/t, while skim prices rose by €60/t to €1,890. SMP prices have risen by €160/t this month, but there is still a big overhang of the product in storage and large volumes coming on to the market as butter production ramps up.
Spot prices for raw milk rose to 36c/l at this week’s Dutch auction.
Milk prices down in Britain
Despite strong markets for dairy fats, several milk processors operating in Britain have reduced their milk prices for June.
Arla announced it is cutting price by 0.4p/l. This brings their milk price to 27.73p/l set on a base of 4.2% butterfat and 3.4% protein.
Müller announced earlier this month that its price will be reduced by 0.5p/l, bringing its liquid price to 26.19p/l. First Milk announced price reductions of 0.1p to 0.35p/l.
Elsewhere in Britain, supermarket retailer Morrisons announced it would now be sourcing all of its own-brand liquid milk through Arla, at the expense of Müller.