June 24, 2013

Average dairy prices remain relatively steady compared to 2012 prices, despite the lack of supply, according to DairyCo Datum's analysis of global and EU markets.

Between April and May, butter prices in the EU have increased by around 6.3% and are 73% higher than the same period in 2012.

However, DairyCo Datum has reported that global average butter prices have fallen by 3%. Also, the Oceania region shows the biggest change in powder prices. Despite whole milk powder and skimmed milk powder prices decreasing by 6.2% and 24.8% respectively, Datum has not suggested that this reflects a global downward trend.

During June, both food and feed skimmed milk powder prices have increased by 6.4% and 2.3% respectively in the EU and, according to Datum, prices for both are higher than 2012 by approximately €1,200/tonne (US$1,573/tonne).

In the UK, farm gate prices remain almost 50% above 2012. National Farmers Union (NFU) chief diary adviser, Rob Newbery, has said that farmers must recognise that liquid prices are now showing an upward trend more or less across the board. However, due to the financial effects of last winter, the NFU has told producers that they should still be looking to add an US$0.0307 per litre on average.