Daily Dairy Digest: 10th of January
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Yesterday was an easy start to the week. We did speak to a bit more people who came back from their holiday and who were shocked by the current market prices. But neither of them was willing or in need of any purchases. Most people are just searching for information and a plan for the coming months.
Looking at the milk collection in Europe we still see a firm trend in Germany with a plus of 3.5% year on year. But France is showing what will happen if the milk price is below 45ct. Because in France the payout price of milk is well below the average in Europe, we see that the incentive to produce more isn't as good in France. With a minus of 1.5% the milk collection keeps lagging last years.
The only other relevant factor that changed today seems to be they USD/EURO fx rate. While slowly moving toward 1.05 on Friday, today the rate spiked up again toward 1.075.
El informe semanal
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