The prices continue to go up and the global milk supply is not going up. As reported, the Ornua equivalent milk price lifted 1.3c/litre for October.
This week, Ornua released the index result at 125.6 (36c/l ex-VAT or 38c/l incl VAT). This is up from 121.8 (34.7c/l ex-VAT) the previous month.
In addition, the Ornua value payment payable to members in the month is €7.95m, which equated to 8.1% of gross purchases in the month (year to date 6.6%).
This is another 3.37c/litre on to the base price, bringing the all-in comparable price to 39.4c/litre ex-VAT for October.
For comparison, the September monthly milk league showed an average of 34.7c/litre base price, leaving a difference of 4.7c/litre before the co-op sets October milk price next week.
The Global Dairy Trade (GDT) index also bounced this week, up 4.3%. In this auction, whole milk powder was up 2.7% and skim milk powder was up 6.6%. The significance is New Zealand is now at peak milk supply.
UK production in September was down 7.0m litres and 0.6% on the same month last year. Volumes for the calendar year so far are within 0.5% of last year.
The latest figures indicate that the UK is now running between 1.5% and 2% below last year’s levels.
New Zealand milk volumes in September - a month before its peak - were 2.59m tonnes, which is down 118,000t and 4.36% on last year on a volume basis, and down 4% on a solids basis.
Australian milk volumes in September were 842.4m litres, which is down 26m litres and 2.94% on last year.
The price indicators suggest a rising market and the producers are not able to increase volumes for one reason or another, depending on the part of the world; feed prices, environmental restrictions or inability to increase stock numbers, etc.