The price of European milk has soared

Monday 20th January 2025 10:16 PM

After a phase of stability over the first half of 2024, the price of average European milk at real levels (all segments combined) has jumped since last summer. It stood at 517 euros per tonne in October, according to the Milk Market Observatory of the European Commission, compared to around €460.00/t for the first half of the year.

Tension on the fats market

The reason for this increase? The tension on dairy resources within the European Union. “The impacts of bluetongue serotype 3 (FCO-3) and tensions on the fat market have contributed to a marked increase in the price of milk in recent months in most European countries,” observes the Livestock Institute (Idele).

Producer milk prices are driven up by the price of butter. The latter, which has been increasing for a year, reached record levels in December, standing at 7,880 euros per tonne.

Evolution of the price of milk in the European Union in 2024.

“The increase in the price of butter is particularly significant this fall, due to low availability resulting from the FCO which affects significant production areas of this product”, analyzes Olivier Carvin, project manager in employment economics at the Chamber of Commerce. agriculture of Brittany.

More than 500 euros per ton

In 2024, the price of milk increased in all major producing countries, with the exception of Spain. A majority has even passed the 500.00 euros per tonne mark. The Netherlands recorded an average milk price for all segments of €535.00/t in October, Italy €528.50/t, Poland €517.00/t.

The increase is particularly significant in Ireland, the price being closely linked to variations in the price of butter in the country. It jumped by more than 111.00 euros between August and October, peaking at €621.50/t. In Germany, it also took a boost, settling at €527.00/t in October.

Evolution of the price of milk in France in 2024.

“In France, the increase remains much more moderate although the price of milk has been increasing for several months,” underlines Idele. The Milk Market Observatory recorded a significant increase of 4.50 euros in the price between September and October 2024, which stood at €488.10/t. It fell below the European average last August.

“This gentler French increase is explained by prices less linked to variations in the price of butter than elsewhere in Europe,” explains Olivier Carvin.

The French dairy herd is in sharp decline

At the end of 2024, the decline in the dairy herd accelerated in France. At 1^is November, “it showed a decline of 2.2% compared to 2023, falling to 3.3 million heads”, notes Idele. In October, entries of heifers into production fell by 14% compared to October 2023. At the same time, the number of exits of animals increased by 7%.

The balance of entries and exits is therefore negative, “an unusual situation for this month which generally displays a positive balance”, underlines the institute. Several hypotheses are on the table, including BTF (bluetongue). “The disease would have caused abortions of heifers in the regions concerned. But it remains difficult to quantify the losses at the moment,” says the Institute.

As a result, fewer heifers were bred in January 2024, resulting in a drop in the number of heifers entering the herd nine months later, in October.