Nov. 4 (Bloomberg) -- European Union cow’s-milk prices rose in September, led by higher payments to farmers by dairies in Germany, France and the U.K., as the euro’s decline aided exports, farm organization LTO-Nederland said.
The average September milk price EU dairies paid farmers was 36.16 euros ($49.78) for 100 kilograms (220 pounds), up 8.9 percent from a year earlier and the highest for the month since the start of the price comparison in 1999, LTO said in a report on its website today.
The dairy-price index tracked by the United Nations’ Food and Agriculture Organization fell to a 12-month low of 203.5 points in October from 214.7 in September and 220.6 points in August, the agency reported yesterday. Prices have fallen as the euro’s drop against the dollar boosts competition among exporters, the Rome-based FAO said.
“International demand is not steady at the moment and mostly driven by currency movements,” LTO said. “EU skim milk powder, cheese and whey powder prices are more competitive and export demand for these products remains rather good.”
The euro has dropped 4.2 percent against the dollar since the start of September, making exports from European countries using the currency more attractive in international markets, which are priced in dollars.
In France, Bongrain SA, Danone SA and Groupe Lactalis raised prices by 33 cents a kilo, while Nordmilch AG and Humana Milchunion eG raised their basis milk price by 1 euro, LTO said. In the U.K., Dairy Crest Group Plc and First Milk Ltd. paid more for milk, the report showed.
--Editors: Claudia Carpenter, Sharon Lindores
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