Dutch dairy FrieslandCampina has increased its guaranteed price for raw milk for November 2016 to €33.00/100kg of milk; an increase of €3.75/100kg compared to October.
In Irish constituents, this is the equivalent of 31.89c/L for November milk. It’s the third consecutive increase in milk price from the dairy.
FrieslandCampina expects that the milk prices of the reference companies will increase in November. Part of the €3.75 increase is a correction on too low estimated prices in the past few months, according to the dairy.
The positive development of the milk price is caused by increasing quotations, mainly for cheese and butter, a statement from the dairy said.
The protein price in November 2016 is €538.69, the fat price is €269.34 and the lactose price is €53.87 per 100kg.
The guaranteed price applies to 100kg of milk with a protein content of 3.47%, a fat content of 4.41% and a lactose content of 4.51% and is exclusive of VAT.
The amounts shown apply to an average supply of 600,000kg of milk annually.
EU milk production decreases in August
Meanwhile, EU milk production decreased by 1.9% in August 2016 compared to August of last year, the latest figures from the EU Milk Market Observatory (MMO) show.
It is the third consecutive fall in EU milk production this year.
In July, milk collections fell 1.4% on the corresponding month last year while in June collections fell by 2.3% year-on-year.
Earlier this year, the European Commission revised end of year milk production volumes in the EU for 2016 downwards.
Provisional production figures from the Commission suggest that 2016 volumes will end 0.9% higher than in 2015.
This figure is down from the 1.4% estimated by the Commission earlier this year. Dairy herd renewal together with the recent market measures adopted by the Commission to reduce output are attributed to the drop.