8% price rise as EU milk market heats up

Industry analysts predict EU milk prices will gain about 14%, due to the strength of Chinese buying and the sharp deterioration in New Zealand’s production prospects.

These factors have forced milk powder prices to their highest ever level in the global dairy trade auction conducted by Fonterra, the New Zealand co-op which dominates global dairy exports.

Already, an 8% guaranteed milk price rise was announced this week for the whole of 2013 for farmers supplying FrieslandCampina, one of Europe’s leading dairy co-ops. Suppliers to the Dutch dairy giant will get 37.6c per litre.