A panel of financial experts convened by LDM expects the average conventional milk price to reach 51.50 cents per kg – and anticipates a narrowing gap between conventional and organic.

A Dutch panel of financial experts in the dairy sector expects farmgate milk prices to rise over the next ten years, according to a newsletter from LDM.

The panel forecasts an average conventional milk price of 51.50 cents per kg – roughly 20 cents above its projection from the previous year.

The anticipated rise reflects expectations of continued growth in European demand for dairy products, while milk production is expected to remain broadly stable. Rising production costs are also factored into the panel’s outlook.

Although organic milk is expected to continue commanding a significant premium over conventional, the panel anticipates that gap will narrow, a trend it attributes to growing competition from other milk concepts.

The forecast draws in part on the EU’s agricultural outlook.

By Maja Løvstrup
Source: Effektivt Landbrug
Photo: Colourbox