Monthly LTO International comparison of producer prices for milk

Average milk price November € 33.37

The calculated monthly milk prices in November 2020 averaged to € 33.37 per 100 kg of standard milk. An increase of € 0.11 compared to the previous month. Compared to November 2019, the average milk price decreased with € 0.57 or -1.7 %.

The average milk price has increased for the 6th consecutive month. However, these were always relatively small increases. These small increases have not been able to offset the larger price decreases earlier this year, as evidenced by the development of advance milk prices in 2020.

With the exception of Danone and Sodiaal, all milk prices have remained the same or increased slightly. The milk price of Arla increased most with + € 1.0. The prices of the German Müller and the Irish dairy companies rose by about half of this.

The calculated price increase of Saputo is entirely due to the increase of the British pound against the euro in November. Expressed in national currency, the milk price – before seasonality - will remain unchanged until March 2021.

The average milk price is not expected to change much in December. As far as is known, most milk prices remain the same and an increase in the milk price of FrieslandCampina of € 0.9 is matched by a similar decrease in the milk price of Danone.

What 2021 will bring remains to be seen, but for Belgian dairy farmers who supply to Milcobel, the start is positive with an increase in milk price of € 1.4 in January. This is Milcobel’s first price increase since December 2019. On the other hand, Arla and FrieslandCampina will lower milk prices in January 2021 by € 1.2 and € 0.9 per 100 kg respectively.

New Zealand's Fonterra seems a bit more optimistic about the near future, as it raised the milk price forecast for the current season. The milk price of the Swiss Emmi will also increase in January 2021.

Read the full report in the monthly overview.