The increase in European milk prices is coming back, according to Rabobank

Better margins and higher milk prices are expected Rabobank predicts that milk production will become more profitable in the first half of 2024. After margins were in some cases weak or negative at the end of 2023, the first dairies have increased milk prices in recent months. EU producer prices are expected to continue to rise. Given the higher fat and protein content, the 50-cent price comes back into focus. Rabobank currently expects the average milk price in Europe to be 47.5 cents/kg. Milk supplies continue to decline In the fourth quarter of 2023, milk supply in the EU and the UK fell more than expected: producers delivered 1.7%. less milk. The reason was wet weather and deteriorating margins. At the end of the year, the dairy herd in producing countries also declined slightly more sharply (-1.5% than the average in recent years (-1.2%). The lower amount of milk had a particular impact on the production of skimmed milk powder (-8.1%) and butter (-2.1%). However, the ...