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Dairy
Milk
18Milk EU - EUR/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
300
340
380
420
460
500
540
580
620
ED24 - Milk fresh 4.0% fat exw DE (MBP)
EU milk collection continued to show a deficit during H1 2022, having decreased by 0.7% y-o-y, to 74.1 million
tonnes. Despite high milk prices, EU farmers continued cutting back production to mitigate the impact of squeezed
margins caused by elevated input costs. Europe's hot and dry summer weather is expected to negatively
impact forage quality, lowering milk fat and protein and weighing on milk yields in July and August.
Thus, the average price of EU milk increased by 1.4% m-o-m in August to EUR 588/MT, and was up 39.6% y-o-y.
There have been eight consecutive months of lower milk output compared to the same period last year. However,
the July 2022 milk output exceeded the milk volumes recorded last July, at 19.6 billion pounds, up by 0.2% y-o-y.
This small milk collection recovery stopped the US milk price rising in August, which had been up since September
2021. Therefore, the monthly average price of US milk slid in August to USD 0.251/lbs, down by 2.9% m-o-m, but
48.7% higher y-o-y.
Milk US - USD/lbs
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
0.1
0.12
0.14
0.16
0.18
0.2
0.22
0.24
0.26
0.28
DU27 - Milk class 1 FMO pp US
Milk UK (MBP) - GBC/L
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
0
10
20
30
40
50
60
70
JQ45 - Milk fresh >3.5% fat UK (MBP)
The August average of the Mintec Benchmark Prices for UK milk eased, having risen for four consecutive months.
UK milk prices have been increasing in line with rising input costs. However, lower demand during the summer
holiday season, especially in the retail service, pushed prices down. Consequently, the August average of the MBP
for UK milk declined sharply to GBC 54.2/L, down by 6.1% m-o-m, but up by 60% y-o-y.