Producer milk prices in Germany and other EU countries are approaching the record level of 40Ct/kg: on average, they are likely to pass this hurdle for Germany for milk delivered in October at the latest. They are also likely to reach the highest average annual level for many years, in any case higher than in 2007 and 2011. They will thus follow the trend on the markets for butter and skimmed milk powder. Their revenue for milk, as shown in the Kiel raw milk value, already exceeded the aforementioned threshold in May. Since then, it has increased even further. The other processing sectors are following suit: Cheese has risen gradually since the spring, but is not, or not yet, achieving a realization equivalent to the Kiel raw material value, especially as the latter has risen even further since the spring. As almost half of the milk delivered to dairies in Germany is processed into cheese, it is easy to see that prices exceeding 40 cents are still the exception rather than the rule. Finally, the prices for drinking milk and accompanying products have hardly changed since the beginning of May; this area is also under upward adjustment pressure. Market participants are also increasingly convinced that prices in all sectors will remain high for some time to come, even if not necessarily at the current peak level. There are also hardly any signs of a rapid change in the market situation on the global market. This is also confirmed by the announcement of record milk prices for Fonterra's suppliers for the dairy year in New Zealand, which runs until the end of May 2014.
