We are currently observing declines in milk prices in domestic purchases, as well as deterioration of the economic situation on the global dairy products market. Unfortunately, we will probably have to wait a while for positive changes.
According to Dorota Grabarczyk, milk market analyst at the Polish Federation of Cattle Breeders and Milk Producers, the price situation in dairy farming is similar in other European Union member states. Data from the European Commission published on March 5, 2024 show that the average milk price in January 2024 reached EUR 46.73/100 kg, which means an increase of 0.3%. compared to December 2023, however, it is still 16.2% lower. compared to January 2023
According to data from the European Commission, in February 2024 there will be a slight adjustment in the price of the raw material, but the price will not drop below EUR 46/100 kg. In January 2024, fourteen Member States saw increases in milk prices on a monthly basis. The largest increases took place: in Ireland by 6.8%. to the level of EUR 47.20/100 kg, an annual decrease of 20.5%, in Sweden by 6.6%. to the level of EUR 44.25/100 kg, the annual price was 20.8 percent higher. lower.
Prices fell in ten countries, the largest declines were recorded: in Poland by 3.6%, to the level of EUR 47.64/100 kg, the price was 7.7%. lower than in 2023, in Italy by 2.4%, to EUR 48.58, by 15.0%. less on an annual basis, in Austria by 1.8%, to EUR 48.52, on an annual basis by 17.7%. less, in Slovenia by 1.4%, to EUR 45.22, by 15.8%. less than in 2023.
– If we combine the declines in dairy product prices with the European Commission’s forecasts, it can be assumed that prices may return to the downward trend. Experts from the banking sector also have similar opinions, who predict that milk prices in Poland will unfortunately decline in the coming months, but will return to the upward trend at the end of the year, informs Dorota Grabarczyk.
What influences the decline in milk prices?
According to the analyst, one of the reasons for the drop in prices can be seen in reduced demand from China, which is one of the largest importers of dairy products.
– The situation in Poland is also influenced by other domestic factors. An example would be the deposit system. The act concerns, among other things, the introduction of a deposit of 50 groszy for disposable plastic bottles up to 3 liters, reusable glass bottles up to 1.5 liters and for metal cans up to 1 liter, as well as product fee rates that entrepreneurs will have to pay in the event of failure to achieve the required level of recycling. packaging waste or if they do not join the deposit system – emphasizes Dorota Grabarczyk.
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