The price of milk 2021 will be on the rise

Faced with the increase in charges, the impatience is palpable. The FNPL recalls that last year, breeders slowed down spring production out of a spirit of responsibility for the balance of the sector. However, “manufacturers and distributors are publishing very good results; This is not our case. The collection has fallen since the autumn and picked up again at the end of April, the recovery of butter powder has progressed well since January. Why is the price of milk not increasing?

Price B already up, A will follow

“Price B has already increased, and that will come for A, maybe from June, more surely from July. The price formulas are based on indicators that will significantly influence the price from this summer,” says Damien Lacombe, president of La coopération laitière. “It is mainly the quotations for butter and skimmed milk powder that will be on the rise this year. Unlike last year, when industrial products had pulled down, without being offset by the rise in PGC France. »

The PGC export indicator should be slightly up. “The price of German milk has already gone up. And we hope that the May negotiations with the German mass distribution will result in increases, ”points out Damien Lacombe. This year, the PGC France indicator could have less impact on the price, following more difficult negotiations on national brands. "The increases obtained can only be seen in the ex-factory selling price indices from this spring. This concerns national brands, which represent around 15% of French supermarkets. There is a very important issue increases on distributor brands. For some, agreements have been finalized, for others, negotiations are still in progress. An increase in the PGC France indicator could therefore be felt later in the year."

It is time for the price of milk to incorporate the increase in charges. "The general Ipampa index has continued to progress since the start of the second half of 2020. In March it reached a new record of 110.1 (base 100 = 2015), i.e. + 6% year on other,” says Idele.