Monthly LTO International comparison of producer prices for milk

Market information

LTO International Milk Price Comparison

The LTO International milk price development is published monthly. The review LTO International comparison of producer prices for milk is published annually. As from July 2020 onwards the LTO International milk prices are published on this website.

Average milk price August: € 32.71

Compared to July 2020

+ € 0.20

€ 32.51

Compared to July 2019

- € 0.85

€ 33.56

Prices in euro per 100 kg standard milk with 4.2% fat, 3.4% protein, 1,000,000 kg per year, tbc 24,999 per ml and scc 249,999 per ml, VAT excluded

Prices in the chart will differ to those in the LTO monthly PDF’s due to: (a) revisions and (b) changes to the methodology from 2019 (see PDF Milk Price Development May 2020 at the bottom of the page).

Average milk price July € 32.71

The calculated monthly milk prices in August 2020 averaged to € 32.71 per 100 kg of standard milk. An increase of € 0.20 compared to the previous month. Compared to July 2019, the average milk price decreased with € 0.85 or – 2.5 %.

The increase in the average milk price is comparable to the previous month. Although the price difference compared to last year has diminished in recent months, milk prices - at least for most dairy companies - are clearly below the level of 2019. Even with further price increases in the coming months, it seems unlikely that the price difference with 2019 will be made up. It is therefore expected that 2020 milk prices will be lower on average than in 2019.

With the exception of Danone and Savencia, all milk prices remained unchanged or increased in August. The calculated milk prices of Sodiaal and FrieslandCampina rose the most in August, namely by 1.1 and 1.0 euro per 100 kg respectively. The Sodiaal price increase is entirely due to seasonality.

There seems to be relatively little movement in milk prices for September. It is known for some companies that the milk price remains the same. In addition, small price reductions are expected for Lactalis (-0.1), Savencia (-0.2) and FrieslandCampina (-0.2). Price increases have been announced for October by Arla, FrieslandCampina (both +0.5) and Saputo Dairy UK (+0.5 pence per litre or approx. € 0.6/100 kg).

Fonterra released its annual results and final milk price for the 2019/20 season on September 18, 2020. The final milk price (cash pay-out) of 7.19 NZD per kg of milk solids (fat and protein) includes a dividend payment of 0.05 NZD. Converted into euros and per 100 kg standard milk the final milk price of Fonterra corresponds to € 31.38. The 2019/20 milk price was therefore the highest milk price since the record season 2013/14.

For the current season - from June 2020 onwards- the most recent forecast milk price range is 5.90 -6.90 NZD per kg of milk solids. The mid-point of 6.40 NZD equates to € 27.13per 100 kg of standard milk.

The USA Class III milk price fell by no less than € 11.44 per 100 kg standard milk in August, but is still at a relatively high level of € 41.18 per 100 kg standard milk.

Read the full report in the monthly overview.

Publication dates

The monthly milk price comparison is published on Friday at 12 noon CET

30 October 2020
27 November 2020
8 January 2021
29 February 2021

Annual review LTO International comparison of producer prices for milk

It is a tradition for ZuivelNL to carry out an international comparison of producer prices for milk behalf of LTO Nederland each year. The report provides insight into the development of milk prices based on production and consumption in the Netherlands and surrounding countries.

LTO International comparison of producer prices for milk 2019

Overview LTO International comparison of producer prices for milk from 2014

Overview of the annual and monthly reports.

Overview from 2014

More information

Willem Koops
P.O. Box 93453
2509 AL The Hague

+31 6 46968836

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Copyright and liability

This milk price comparison is carried out by ZuivelNL on behalf of LTO Nederland and in collaboration with EDF (European Dairy Farmers). The basis for the comparison is the milk money bills of dairy farmers.

Copying data from this publication is permitted, provided the source is acknowledged from the LTO International Milk Price Comparison. ZuivelNL accepts no liability for any damage resulting from the use of the results of this publication.