Milch Cockpit, 26.05.2017

(AMI) - An ecologically active dairy farm in Germany has received 48.19 Ct / kg for its raw material with 4.0% fat and 3.4% protein in 2016. Compared to the previous year, this was about 0.5 ct more. As a result, the price increases overshadowed the declines in the middle of the year. From the beginning of the year to the lowest point in August, which stood at 46.73 Ct / kg, the producer price fell by 2.1 Ct. In comparison, the producer prices for conventional milk showed a drop of around 4.6 Ct from the beginning of the year to the lowest point in May. Causes for the deviant development lie, on the one hand, in the payment system for organic milk, which is largely decoupled from the conventional area, and on the other hand at the different processing centers. Due to the lower dependency on exports, fluctuations in the world market for organic milk are not so severe. At the same time, the proportion of bulk products, such as powder and blockbutter, is lower and that of end-consumer products, which are subject to longer-term contract running times. This leads to a more stable price trend for organic milk.

Lead over conventionalMilk reached record level

Until the middle of 2016, the gap between the disbursement rate for conventional and ecologically produced milk was gradually increased. This development began in early 2014. The scissors opened continuously and reached its peak in May 2016. This month the organic milk producers received about 24.2 ct more than their conventionally operating colleagues. At this time, the disbursement rate for organic milk was more than double that of conventionally produced milk. And the annual average of 21.5 Ct also reached a record level.