Rising revenues from milk products - high spot prices - subdued producer prices Sales revenues in the dairy products have made in the EU a strong leap upwards. Butter, which is 100 kg each on €375 / 100 kg, or up 50% 3 months £ 250 marched above all. Cheddar cheese and full-cream milk powder did not quite as great leaps, but show a clear upward trend with significant increases of 25%. The market price of skimmed-milk powder has set off by the State-guaranteed minimum price of nearly €170 per 100 kg upwards and record now at the mark of 193 €/ 100 kg. This eliminates the requiring State intervention. But's 325,000 t in the camp, which again back need to pass in the near future in the market are now. A reasonable time extension is required if you want again to higher market prices in question. The Drive for rising prices of milk products comes from international trade. Worldwide, the rates are average 30% have risen as the auction results of global fortnightly read dairy trade is. Cheap sales opportunities of dairy products in the EU milk leads to increased demand for the commodity. Therefore spot prices are negotiated between the dairies with surpluses and others with deficits of milk, which have reached a considerable level of 36 to 37.5 ct / kg . The average producer prices for raw milk still lag behind. The EU average level is just under 26 ct / kg. The commodity value calculated from sales of butter and skimmed-milk powder is already over 29 ct / kg. The prices paid for the dairy farmers will tighten with appropriate delay. However supply contracts and delayed cash flows slow an immediate shifting to the producer level. Strange the State compensation of 14 ct / kg currently act as a lure for the task of milk production on the one hand and rising spot prices up to 36 ct / kg as an expression of scarce raw material availability. However, you should note the regional and structural disparities in this case. It is assumed that the setting of dairy farming in certain less-favoured regions is rather than in booming areas. Windfall by anyway task willing dairy farms are not to have the hand. First braking effects of the steep rise in rates for dairy products are especially for whole milk powder. Here, China plays a dominant role. The coming revenue developments will be expected to be more moderate.
