Thursday, October 27, 2016

Turnaround for production: Starting in November, the milk is significantly more expensive – in THE WORLD

Die the cheap milk is over. In the beginning of next week, the prices for the 1-Liter is expected to grow-package of fresh whole milk in the stores and at discounters for a minimum of ten cents. “We expect increases in the double-digit Cent range,” said a spokesman for the milk industry Association, the Lobby of the German dairies. In the case of other dairy products, the price increase wave is already underway. The average price for German brand butter was in the budget-price segment increased in September to $ 1.29 for a half-pound box, said Kerstin Keunecke, expert of the Bonn Market Observatory for AMI, the “world”. In August, the av erage price was 99 cents.

drinking milk is not currently as cheap as it is long. At the beginning of may, discounters such as Aldi or Lidl, and supermarkets of Edeka to Rewe had driven the price significantly, usually around 13 cents to 46 cents per litre. It’s exactly half a year later, in the reverse direction, is no coincidence. It is customary in the industry, every six months, new contracts between dairies and retailers to come into force – this Time in November.

milk production has been restricted

Behind the expected steep price rise in milk, a turn in the production. Many farmers in Germany, but also in the EU and, in addition, have limited the milk production. “The milk market back to its former strength,” writes Peter steel, the Chairman of the milk industry Association, in an Editorial in an industry newsletter: “prices are climbing, in which a product is faster, the other slower.” Germany’s dairy farmers are likely to take in the trend is with great relief that knowledge. The producer prices had reached in the spring with sometimes less than 20 cents per litre and a low point, many of the farmers enabled them to Survive.

How to Marketing the milk

The milk price is in free fall and conventionally produced milk as cheap as never. Many consumers are therefore now aware of more expensive products, but some of the seal is disputed.

source: The world

demonstrations, protests and crisis, with the policy of the follow-up meeting. “It was a difficult year for all of us,” writes steel. Now, however, farmers and dairies could breathe a sigh of relief gradually. The brand by 30 cents for milk money will be reached “soon, across the Board”. Market expert Keunecke can only confirm this. In September alone, there had been a rise of almost two cents to 25.60 cents. In previous months had hinted at the trend with lower increases. The low point was reached in June with 22.8 cents in the national average. “It will remain the low point,” said Keunecke.

The dairies have increased, according to your information already in their selling prices for milk products such as cheese, yogurt and milk powder. Now the milk: “the laws of The market, increases in consumer prices is a logical consequence,” she said.

demand has not attracted noticeable

Since the beginning of 2014, the prices for the raw milk of the farms were like. Since milk is traded in the Form of milk powder and other durable products in the world, is subject to the price development is, in principle, similar rules, which also apply to other commodities, such as Oil or wheat.

The price low, have forced producers in the southern hemisphere of the earth since the beginning of the year to retreat, or at least production limitations, according to a Report by the dairy industry Association. Since June, there had been also in Germany to a reduction of the production. In addition, the EU have taken more than 330,000 tonnes of skimmed milk powder from the market and more from the pressure of Surpluses freed.

The demand had not risen noticeably. Although China and Russia have so far, a little more removed than 2015, but were the exports, yet the high level of the good previous years. Overall, the paragraph compete on the world market. Even now, the dairy Lobby warns the producer, therefore, to use the may be approaching a better time for an expansion of the production: “For a long-term stabilization of milk prices at a higher level, a continued moderate milk production is not necessary, as long as global demand returns to its growth.”


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