Milk price up by 27 percent
FrieslandCampina: 11 percent more turnover
Dairy processor FrieslandCampina posted a net turnover of almost 2017% in the first half of 11, which amounts to €6.072 million. The payout price to its members has increased by 27% to €38,37 per 100 kilos of milk. The company announced this on Thursday, August 31.
The growth in net turnover is mainly due to the increase in the selling prices of milk, butter and cheese. The purchase of Engro Foods in Pakistan also has a positive effect on the turnover figures. The operating result rose by 7,8% in the first half to €275 million.
CEO Roelof Joosten: "The milk price for member dairy farmers has recovered this year, after a number of disappointing years. This is reflected in the increase in turnover. The compensation to member dairy farmers has increased by 24%, compared to compared to the first half of 2016."
Significant increase in milk price
The payout price for milk supply to members has increased by 27% and thus amounts to €38,37 per 100 kilos of milk, compared to 2016. The interim payment for members is €1,17 per 100 kilos of milk.
Organic milk price hardly increases
The organic milk price for the first half of 2017 is €51,44 excluding VAT per 100 kilos of milk. In the first half of 2016 this was €51,12. The organic guaranteed price for the first half of 2017 was EUR 48,44 excluding VAT per 100 kilos of milk. In 2016, that was €48,17 over the same period.
FrieslandCampina payout prices for regular and organic milk
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Price in euros per 100 kilos in 2016 up to and including week 35 in 2017
Source: Boerenbusiness
Milk supply fell in the first half of the year by 53 million kilos to 5.435 million kilos. That is a decrease of 1%. This is partly due to the temporary stand still from the beginning of this year.
Expectation
Milk supply is expected to increase slightly in the rest of 2017, compared to the second half of 2016. Demand for dairy products will also increase slightly in the second half. The reason for the increasing demand is on the one hand the demand for dairy raw materials in China and on the other the higher quotations for cheese and butter.
Interim benefit of €1,17 per 100 kilos
On September 1, 2017, an interim payment will be paid to the members of €1,17 per 100 kilos of milk. This is exclusive of VAT and is equal to the first half of 2016. This is 75% of the pro forma performance premium for the first half of the year. The final settlement will be made in April 2018, based on FrieslandCampina's annual results and the amount of milk supplied by the dairy farmer in 2017.
Due to higher receivables from rising sales prices and higher inventory valuation, cash flow decreased from €165 million to €29 million in the first quarter of 2017.
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