Variable Milk Prices in Europe May Influence Future Market Dynamics
Source: The DairyNews
Georgy Kukhaleishvili, an analyst at the Association of Milk Producers, notes that while rising milk prices in Europe are currently mitigating the expected seasonal increase in milk yields, upcoming summer conditions and ongoing profitability challenges could alter the market scenario.
Preliminary data from the European Commission shows that as of April 2024, the average price of raw milk in the EU stood at 46.31 euro cents per kg, marking a 0.2% decrease from March and a 2.6% decline year-over-year. In contrast, Ukraine reported an average raw milk price of 38.13 euro cents per kg last month.
Within the EU, raw milk prices showed a slight increase in eight member states this April. Notably, the Netherlands and Poland saw modest gains in raw material prices, rising to 46.75 euro cents per kg and 47.89 euro cents per kg, respectively. Conversely, prices remained stable in countries like Germany, Denmark, Spain, Portugal, Malta, and Cyprus. The most significant price drops were observed in the Czech Republic, Lithuania, and Slovakia with decreases of 1.9%, 3.5%, and 5.9% respectively.
Cyprus, Malta, and Greece continue to have the highest raw milk prices, whereas Latvia, Lithuania, and the Czech Republic have the lowest. Year over year, increases were noted in Belgium, Ireland, Latvia, Lithuania, the Netherlands, and Poland, ranging from 2.4% to 12.3%.
Kukhaleishvili highlights that the average EU milk price in April was stable compared to March, suggesting a balance between supply and demand. This stability is likely bolstered by strong demand from cheesemakers anticipating the tourist season in Southern Europe and butter producers in the asparagus season.
Differences in milk production across Europe are significant, with northern and western regions like Denmark, Germany, the Netherlands, and Belgium experiencing yield reductions due to various challenges including environmental regulations and labor shortages. These factors, combined with rising production costs and relatively low milk prices, are forcing some farmers out of the industry or to cut back on their dairy operations, potentially leading to intense competition for raw materials among dairy processors and higher purchase prices in the future.
In Ukraine, raw milk is currently 21% cheaper than the average price in Europe, which may encourage an increase in the export of commodities such as butter or canned milk to European markets. This scenario is more likely if milk yields in Europe decrease due to a strong summer heat wave. The USDA anticipates that the EU's raw milk production in 2024 might be lower than the previous year, suggesting potential shifts in the dairy market landscape.
Within the EU, raw milk prices showed a slight increase in eight member states this April. Notably, the Netherlands and Poland saw modest gains in raw material prices, rising to 46.75 euro cents per kg and 47.89 euro cents per kg, respectively. Conversely, prices remained stable in countries like Germany, Denmark, Spain, Portugal, Malta, and Cyprus. The most significant price drops were observed in the Czech Republic, Lithuania, and Slovakia with decreases of 1.9%, 3.5%, and 5.9% respectively.
Cyprus, Malta, and Greece continue to have the highest raw milk prices, whereas Latvia, Lithuania, and the Czech Republic have the lowest. Year over year, increases were noted in Belgium, Ireland, Latvia, Lithuania, the Netherlands, and Poland, ranging from 2.4% to 12.3%.
Kukhaleishvili highlights that the average EU milk price in April was stable compared to March, suggesting a balance between supply and demand. This stability is likely bolstered by strong demand from cheesemakers anticipating the tourist season in Southern Europe and butter producers in the asparagus season.
Differences in milk production across Europe are significant, with northern and western regions like Denmark, Germany, the Netherlands, and Belgium experiencing yield reductions due to various challenges including environmental regulations and labor shortages. These factors, combined with rising production costs and relatively low milk prices, are forcing some farmers out of the industry or to cut back on their dairy operations, potentially leading to intense competition for raw materials among dairy processors and higher purchase prices in the future.
In Ukraine, raw milk is currently 21% cheaper than the average price in Europe, which may encourage an increase in the export of commodities such as butter or canned milk to European markets. This scenario is more likely if milk yields in Europe decrease due to a strong summer heat wave. The USDA anticipates that the EU's raw milk production in 2024 might be lower than the previous year, suggesting potential shifts in the dairy market landscape.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
