Liquid Milk Council Report November 2024

Market Report 

• Weekly milk flows in Germany and the Netherlands have been weaker than expected with ‘bluetongue’ impacting. However, the virus’s long-term impact is unclear and could be offset by improving margins and growth in France and Poland. 
• Global flows should turn positive as the year progresses, but annual output is likely to be flat. 
• European cheese, butter and WMP prices now at a premium to global levels, some convergence with global levels may occur. 
• Buyers still need to conclude business and overall, the fundamentals appear solid.

After lifting further in early September, European pricing stabilised. This should stimulate some buying activity, but futures indicate some convergence with global price levels may occur.

September 2024 Farm Gate price

Activity since last National Council Meeting

Milk Price Negotiations

Milk Price Negotiations for winter 2024/spring 2025 season have concluded with most of the main Coops, except for two.  It is an anticipated that these will be concluded shortly.  Payment will be based on several factors, through autumn calving bonuses, meal purchases and top up for additional milk supplied over the 6-month period.  

There is a concern about the future supply of liquid milk due to insufficient price being paid.  Research suggests an average price of 15c/litre to be paid over the four winter months is required to make it more attractive and viable into the future.  In addition, age profile of suppliers and the possible loss of the derogation will have significant impact on the industry.

Liquid Milk Market

The statutory powers of the Food Regulator must be increased to compel companies to provide data in terms of value in the food chain to the Regulator as this not currently the case.

EU/COPA developments

Proposed legislative changes on the protection of animals during transport

There is no update on the proposed legislative changes on the protection of animals during transport.