European milk market prepares for price decline in October
In September, the European raw milk market is experiencing a decline in prices on the secondary market. Last week, spot prices in the Netherlands and Germany fell to 30 euro cents per kilogram, a level not seen for a long time.
Changes are also expected on the primary market from October 1. Today, September 29, FrieslandCampina is due to announce its purchase prices for October. Historically, the company has already recorded a decrease of -4.5 euro cents per month.
Discussions are also ongoing on the Polish market regarding a possible price decrease in October in the range of 2–10 euro cents, depending on the company’s profile. On average, a correction of 4–5 euro cents is expected for raw material contracts.
In Ukraine, attention is currently focused on stabilizing the domestic market: issues are being discussed regarding stopping the growth of milk purchase prices in the fall and the potential for increasing selling prices for products for distributors. Risks previously voiced by experts are now beginning to gain wider recognition among market participants.
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