12 month milk price rises of 13.3% for European dairy farmers, 90% in US
Reporting EU July prices which were 13.3% ahead of July 2006, analysts said the rising trend will continue on the back of a strong advance in cheese prices since June.
Prices of milk powder were stabilising at high levels on the EU and world markets. Cheese prices were rapidly increasing, and with a butter shortage looming this winter, butter prices had also started to rise at a very fast rate.
World dairy commodity market prices will stay at high levels for some time, according to the review for July, which showed Glanbia at €32.34 per 100 kg (33.3c per litre) and Kerry at €33.82 (34.82 c/l), both paying over the average of €30.66 (31.57 c/l) for 16 dairies across Europe. The top price was paid in Belgium by Milcobel, at €35.85 (36.91 c/l). These VAT excluded price are for 4.2% fat, 3.4% protein, 500,000 kg per year, TBC 24,999 and SCC 249,999, collected every other day.
Meanwhile, farmers in the USA were paid €37.97 (39.1c/l) in July, 2007, an astonishing 90% ahead of July, 2006. The consumer price index for dairy products in the US has risen 9.5% in 12 months. Record pay-outs have taken the July Fonterra milk price in New Zealand to €27.89 (28.71 c/l).
