Guarantee price increased again after 3 months

This is a different trend compared to previous months. The price has never been stable for so long before. The increase in the milk price of the previous months had been in the offing for some time.

Cheese prices are on the rise and short-term delivery is becoming increasingly lucrative. This provides a good basis for the rising milk price. Compared to the previous 2 years, the guaranteed price is a lot higher. In 2016, the dairy farmer received 25 euros per 100 kilos of milk and in 2015 this was 30,50 euros per 100 kilos of milk. At the beginning of this year, the guaranteed price was still 34,50 euros per 100 kilos.

Price increase was not fixed
Yet this price increase was not a complete race. A combination of the concluded contracts and a moderately profitable protein temper the price increase. The phosphate reduction plan also continues to have an effect. On the one hand, the milk supply is being squeezed by the declining number of cows in the Netherlands and on the other hand, the milk price gives farmers the financial scope to feed additional feed to maintain milk production. 

Increasing prices
FrieslandCampina reports that it expects prices to rise during the month of June. The guaranteed price for June has included a correction of 32 cents. This is because the milk prices of the number of reference companies have already been estimated too low.

The driving force are the quotations for cheese, butter and milk powder. The protein value for the coming month has been set at 599,90 euros, the fat value 299,95 euros and the lactose value 59,99 euros per 100 kilos.

The guaranteed price applies to 100 kilos of milk with 3,47 percent protein, 4,41 percent fat and 4,51 percent lactose excluding VAT. The prices apply to an average delivery of 800.000 kilos of milk per year from 2017. This was 600.000 kilos in previous years. As of 2017, the quantity surcharge and the seasonal scheme have expired.