The average price for European milk continued to rise in July for the third consecutive month with a €0.10 (+0.3%) increase, though the overall picture among European milk processors remains mixed.

According to Dutch analysts ZuivelNL, the European average base price before bonuses for July was €38.35/100kg, a 15c rise on June figures.

When bonuses are included, the average price paid by processors amounted to €40.26/100kg.

While this was €0.10 (+0.3%) higher than in June, it remains almost 20% below the level of July last year.

ZuivelNL

ZuivelNL was set up by the Dutch Dairy Organisation and the Dutch Federation of Agriculture and Horticulture in January 2014, with the function of tracking price trends across Europe.

It calculates prices in euro per 100kg standard milk with 4.2% fat, 3.4% protein, total bacterial count (TBC) 24,999/ml and somatic cell count (SCC) of 249,999/ml with VAT excluded.

Of the three Irish co-ops surveyed as part of the ZuivelNL European milk price analysis, Tirlán is the only one to come in above the average when bonuses are included.

The processor offered a base price of €36.97, below the European average base price of €38.35.

However, Tirlan's calculated milk price includes a sustainability premium (Sustainability Action Payment) of €0.50/100kg, which brings its average up to €40.36, just 10c above the European average of €40.26.

For Dairygold, the base milk price increased for the third consecutive month, rising by €0.51 to €37.78.

Both the fat and protein prices increased slightly. The milk price includes a bonus of €0.10 for the national sustainability program SDAS and the Grassroots sustainability premium (€ 0.78), bringing the price up to €39.43.

Tirlán saw increases in fat and protein prices in July, bringing its base milk price up to €38.32. The milk price includes a payment of €0.12 for participation in the SDAS programme, resulting in €38.44.

According to ZuivelNL, a select number of processors increased their milk prices sharply, with Arla, DMK and Saputo standing out.

For the Danish/Swedish processor Arla, the report said the increase was driven by higher prices for both fat and protein.

Germany's DMK, which was approved by the European Commission for a merger with Arla in May,

For Saputo Dairy UK, fat and protein prices increased by 5% in July, as they did in June. The increase was partly influenced by a positive exchange rate effect.

In the United States, the milk price declined further due to lower fat and protein prices, the report said.

Milk deliveries

Though the growth in EU milk deliveries slowed from April onwards, it has remained at a relatively high level.

Milk deliveries in Belgium, Germany and the Netherlands once again showed strong growth.

However, in Poland, milk supply declined for the first time in years, while the report described the decrease in deliveries in Ireland since April is "noteworthy".

In terms of milk products, heatwaves and drought in large parts of Europe that resulted in a temporary dip in milk deliveries led to butter prices increasing slightly.

"However, ample stocks are still limiting the potential for further price increases", the report said.

The skimmed milk powder quotation stabilised at the beginning of July after a brief decline in June due to weaker demand and then rose sharply from mid-July onwards.

This was mainly due to strong demand on the world market and the fact that Europe was the "most attractive supplier" to many export destinations.

At the end of August, the quotation exceeded the €300threshold for the first time since 2022, ZuivelNL said.