The Mintec price of EU milk rose marginally by 2% between 20th May and 24th June 2020, to EUR 455/MT, which is attributable to the increase in demand following the easing of lockdown measures.
In its latest forecast report, the EU Commission expects the growth in milk production to be relatively muted in 2020, at approximately 0.4% y-o-y, due to the reduction in global demand as a result of the pandemic, as well as drier-than expected weather conditions.
As consumer confidence increases and travel restrictions are lifted, demand will be expected to rise in the near term. Although demand is reportedly stronger from the retail sector, the export front has been slow. Therefore, depending on the rate of recovery in export demand, as well as government support programmes such as the private storage assistance (PSA) scheme, the Mintec price of EU milk is expected to experience a tepid increase.