Dutch milk rises while Australia crashes down

Dutch milk production for September showed the Netherlands is continuing to increase monthly production.

Last month’s figures also represented a new record for September Dutch milk production, exceeding the previous record set a year earlier.

According to Eurostat Dutch milk collections totalled 1.13m tonnes, up 4.0% from the 1.09 million tonnes produced in September 2015. Cumulative Dutch collections for the year to date now total 10.85m tonnes, 9.9% ahead of the same point last year.

The latest statistics for January to July from the European milk observatory show UK and French milk supply level or negative compared to last year but most of the other major dairy countries showing positive trends compared to last year.

Germany up 3.1%, Holland up 11.5% and Ireland up 8.8%. The Irish Farmers Journal reported recently how Irish processors have seen September supplies crash as farmers react to struggling prices.

Australian woes

At the other side of the world Australian milk supply continues a serious downward trend. Latest figures for August production show a slide of 9.3% for the month of August at 725,000 litres down from 799,000 litres for the same month a year earlier.

What next?

Despite the fact Dutch milk price is rising, European supply, including Dutch milk supply, would be expected to fall off over the next number of months.

The EU’s Voluntary Milk Reduction scheme coupled with the fact FrieslandCampina plan to compensate farmers an additional 10 c/litre on top of the EU 14c/l to reduce supply will reduce Dutch national supplies.

Dutch processor FrieslandCampina has guaranteed price for raw milk for October 2016 is €29.25 per 100kg of milk. The guaranteed price increases €3 per 100kg compared to September.

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Irish milk prices for September