Swiss company Emmi tops the list, with the top in the EU being Italy’s Granorolo (North). Two Irish companies, Glanbia and Dairygold, sit at the bottom of the EU payments table.
The report is commissioned by LTO Nederland (the Dutch Federation of Agriculture and Horticulture), in conjunction with European Dairy Farmers and is undertaken by ZuivelNL (the Dutch dairy sector organization).
The calculated advance milk price in April 2016 averaged €26.29 ($29.62) per 100 kg standard milk with 4.2% fat and 3.4% protein, which is a decrease of €1.15 ($1.30) compared to the previous month. Compared to April 2015, this is a reduction of €4.79 ($5.40) or 15.4%.
The calculated milk prices in April fell by about the same amount as in March. With the exception of Glanbia, all companies reduced their milk prices.
LTO Nederland said that the milk price of UK company Dairy Crest fell most, largely as a result of the seasonal levy in April. The second largest reduction was the milk price of Italian Granarolo.
LTO Nederland said that the growth of milk production in northwest Europe weakened slightly. Despite the slightly lower growth rate in Europe the increase in global milk surplus still is mainly a European issue. Milk production in the US is also increasing, although in April the growth was lower than in February and March.
In Oceania, the milking season is almost over, and the report notes that Australian milk production slowed down because of adverse weather conditions. The New Zealand milk supply also decreased. However, the decline was less than expected.
All prices are VAT excluded, paid to producers and assuming milk is collected every other day.
Fonterra price based on most recent forecast
US price based on USDA announcement
The report says that the market seems currently slightly more positive.
It notes that there is an upward correction in the market, the bottom was reached in mid-April, after which prices increased due to a slightly weaker than expected growth of supply and an increase demand.
LTO International Milk Price Comparison is published again in July at www.milkprices.nl.