UK’s customers and their European Union (EU)’s counterparts are bracing for hiking milk rates as supplies slump worldwide.
According to Arla, the dairy multinational that makes the Cravendale branded products, UK shoppers should expect tough pricing regime end 2024.
For one, Europe’s wholesale butter has already hinted of the upward curve with its surprise €8,000 ($8,831) a tonne hike on September 3, 2024.
Though the above indicates only a daily trend, the EU’s milk products have nevertheless been pricey on the long-term.
Recent History of Milk Rates in the EU
Europe’s Milk Price Observatory’s visualization puts the August 2024 price average at €46.69 ($51.56) per 100 liters, 0.6% above July’s. This was the highest reach since May 2023 when the rate had stood at €45.49 ($50.23) per 100 liters.
However, August 2024 still marks a 13-month cooling of prices since its high epoch between June 2022 and April 2023. During this period, rates had fluctuated between €47.52 ($52.45) at the lowest and €58.25 ($64.29) per 100 liters at the highest.
Mid-year statistics for the most recent 13-month period ending August 2024 however show an inching up monthly price. While the June 2023 market rate averaged €44.30 ($48.90), that of June 2024 was at €46.01($50.79). This marked an upward curve of 0.9%, year-on-year.
It is also apparent that European countries sell their dairy differently from their neighbors, including major consumer Montenegro. One of the costliest is Cyprus, whose July 2024 price topped the bloc at €63($69.54) per 100 kg. On the flip side was Estonia at an average €41.26 ($45.54) for the same hundred liters.
Tightening Global Output
According to Stefan Vogel, GM at Rabobank Research for Australasia on Daily News New Zealand, price hikes owe to tightening global supplies.
China, the Americas and the EU are all experiencing dipping supplies amid farmers’ reluctance due to increasing dairy production costs.
So, as 2024 reaches its last quarter, so are milk rates in the EU, the UK and elsewhere seeing changing fortunes. To learn more on how producer prices have been performing in Europe, read on the statistics below.
Europe Milk Price Statistics
In April 2024, Europe had relatively fair range milk prices by world standards. While Hong Kong topped retail milk prices at $3.11 per liter, Switzerland, the priciest European country, came sixth at $2.30. Norway followed at the 10th place at an average $2.19 a liter, with Denmark 13th at $2.07 a liter. Interestingly for a European nation, Ukraine came near the bottom of 165 nations for April 2024 with just $0.65 a liter. This was just below Latvia’s equally amazing $0.94 a liter.
Given the diverse pricing, do European nations have the same milk consumption per capita?
Despite the pricing difference, almost every nation in Europe, including the UK, drinks more than 200 liters per capita. In 2021, Montenegro at 396 liters, Ireland at 316 liters and Albania at 306 liters per person per year topped consumption. These consumption rates were also some of the highest worldwide.
How much do Europe’s farmers (Excluding UK) earn from each milk sale?
Between 2019 and 2023, the EU’s dairy farmers earned between €39.2 euro ($43.28) and €43.5 ($48.03) per 100 liters, per European Commission data. During this period, 2023 had the handsomest rates, with the lowest average at €44.3 ($48.91) per 100 liters and the highest at 55.7 euro ($61.50).