European dairy market slightly more solid
Although milk prices paid by European co-ops entered 2010 slightly lower than 12 months previously, the market is now seen as slightly more solid, due to lower milk supply than expected, and the depreciation of the euro against the dollar – which favours European exporters, and has resulted in demand from big milk powder importers such as Algeria.
Since early December the euro has fallen against the dollar, from $1.51 to $1.35 last week. There are signs of stabilisation in international markets with slight downward movement of prices in Fonterra’s global internet auctions in February and March.
In January, Kerry and Glanbia again paid the second and third lowest prices in the league of 16 big EU milk processors compiled by the Dutch Dairy Board.
Respectively, they paid €23.87 and €24.98 per 100 kg of milk with 4.2% fat and 3.4% protein. The average price of the 16 big processors was €28.51.
