In October, the average European milk price experienced a notable decrease of €0.70 compared to September, settling at €40.64 per 100 kilos of milk, based on 4.2% fat and 3.4% protein, according to the monthly publication of EDF-ZuivelNL International Milk Price Comparison. This represents a substantial year-on-year decline of €13.50 per 100 kilos.
Differences in pricing strategies emerge among European companies. In October, Danone, the French company, led with €2.50, calculated on an 80% reference price for the French market and the remainder for export markets. Both these figures decreased in October, with the loss of a premium contributing to a €0.50 reduction in the overall milk price.
Milcobel from Belgium, the German Hochwald, and Lactalis uti France reduced their milk price by €1, while the English Saputo managed an increase in October by €1.38 to €38.99, thanks to a seasonal surcharge despite decreasing fat and protein values.
Capsa from Spain tops the list, paying out €49.32 per 100 kilos of milk in October, with Dairygold from Ireland at the lower end with €34.14. FrieslandCampina, at €39.79, falls below the European average. Notably, French dairy companies consistently pay out more than €44, and the Finnish Valio surpasses the average with €46.46 per 100 kilos of milk.
The report highlights a global trend of declining milk supply in major dairy-exporting regions, excluding Australia. While the market remains fairly balanced, lower milk supply creates shortages, although demand for dairy is not exceptionally high. Challenges persist for Europe in competing on the world market due to an unfavourable EUR/USD price ratio and current price levels.
