In a bearish context for the main European milk producers, France has done well. Cumulatively from January to September, the volumes produced increased by 1.1% over one year, all cow's milk combined (conventional , organic and AOP/IGP). Good grass growth supported production. However, collection will decline again towards the end of 2024, suffering the effects of bluetongue (BTV) in Grand Est, Hauts-de-France and later in Loire" rel="tag">Pays de la Loire.
Record butter price
Regarding the price of milk, a drop of 1.6% took place over the first nine months of the year in France (standard price). However, it has increased again since July, which should attenuate the decrease observed over twelve months in 2024. On average from January to September, the price of conventional milk at real levels stood at €480/1,000 l in France.
The rise in the price of butter helped support the price of milk in the second part of the year. The price of butter has broken records due to global tension over dairy resources. The €8,000/t mark was reached in September in France. Although the milk powder market is very calm, prices are higher than usual.
The increase in collections is causing a rebound in manufacturing, particularly in the ultra-fresh and cheese segment. Conversely, the production of infant milk powders is declining, as export outlets are eroding. Over nine months, shipments to China fell 28%.
On the consumption side, price increases are more measured in 2024 than in 2023. The price of dairy products has fallen by 3% over ten months compared to 2023. Household purchases of dairy products are holding up well. To counter inflation, a strategy of shifting towards the lower end of the range is at work.
