(Please note that this difference is not based on the figures in the backdata, however, as the standard litre has been changed.) According to The Dutch Farmers' Union, LTO Nederland, the farmgate milk price in France is higher than one year ago; Bongrain CLE, Danone, Lactalis and Sodiaal have all increased the price paid to the producers. Large dairies such as Milcobel (Belgium), Humana (Germany) and Hameenlinnan (Finland) have also increased their prices compared with March 2006. In Ireland, auction and spot prices have increased - for more information on auction prices please click here.

However, most dairy farmers are receiving a lower price than a year ago, despite the ongoing increase in the dairy commodity markets, both in the EU and worldwide. The supply of milk powders is low, which has resulted in high prices. In addition, rising demand for butter, coupled with low production, has also resulted in an upturn in butter prices. For further information on EU wholesale prices please click here; for information on world wholesale prices please click here.

In terms of UK companies, both Arla Foods UK and First Milk remain well below the EU average, with prices of €24.79 and €23.76/100kg respectively. However, as explained below, the LTO standard litre profile is not representative of the average British dairy farmer. Additionally, to be comparable, the UK price has to be converted into Euros and is therefore influenced by fluctuations in the exchange rate. For information on exchange rates please click here.

Cumulative milk output in the EU25 between April 2006 and February 2007 has decreased by 0.3% compared with the same period the previous year. Holland, however, saw an increase of 2.5% (2.73 million tonnes) and exceeded the quota limit by 1.8% (although when the negative fat correction is taken into consideration, the surplus is 1.2%).

Note: The LTO, after consultation with an international sounding board, decided to adjust the definition of its standard litre of milk because of changes in the profile of milk in the EU. The protein percentage has been raised from 3.35 to 3.40% and the annual delivery has been increased from 350,000 to 500,000kg. It is difficult to ascertain a representative profile throughout the EU because each country has its own typical profile and the standard litre used continues to be geared towards milk production profiles in mainland Europe which often have higher average levels of fat and protein but lower levels of volume. For further explanation of the standard litre, please click here.

For an explanation of what the milk prices are based on please see EU price explanation .

EU MILK BUYER PRICE AVERAGES

Source: LTO Nederland

AVERAGE EU MILK PRICES

According to Forum Europa, some European countries have seen an increase in milk prices when compared with February 2006. Increases in Finland, Sweden, Germany, Austria and the Netherlands have resulted in an increase of €0.03/100kg in the EU-15 average for February compared with the previous year. However, the average milk price for the EU-25 has decreased by €0.24/100kg for the same time and is now €28.64/100kg.

Prices in the UK are reported to have decreased by €0.10/100kg, from €26.24/100kg in February 2006 to €26.14/100kg in February 2007. However, this is partly due to fluctuations in the exchange rate. For further details on exchange rates please click here.

For prices in more EU countries please view the back data at the bottom of the page.

TheCattleSite News Desk