High milk price does not soothe livestock farmer's unrest

The system of phosphate rights will come into effect on January 1, 2018, but we are still waiting for the rights to be concretely implemented. It still causes some uncertainty. In addition, there is also the fear that FrieslandCampina will introduce a hefty discount on the last liters of milk.

Before that, there were already many things that fueled the unrest. For example, there is a boycott on group and tie-in stables from the Dutch Dairy Organization (NZO).

Sentiment not good
All in all, it has an impact on sentiment among dairy farmers. Low prices usually cause unrest, but towards the end of 2017 the opposite is true. For example, FrieslandCampina, Cono, DOC Kaas and Bel Leerdammer write an average milk price of €40,91 per 100 kilos (with an annual supply of 600.000 kilos, with 4,41% fat and 3,47% protein). An average rating that can go down as above average.

In the past, a period of low milk prices was a reason to look for another buyer. Since the end of the milk quota, this no longer appears to be the driving force for a switch. For example, at the fair in Gorinchem it appears that dairy farmers are looking for a party that matches their own ideas and expectations.

Unfortunate statements from the higher ranks within milk processors (to the media) are enough to encourage dairy farmers to look for another processor. The vision for group stables or the way in which sustainability plans are implemented also make whether dairy farmers still feel at home with a buyer.

Who offers milk?
The dairy farmers who offer milk are members of DOC Kaas, but also members of FrieslandCampina. The news about a possible boycott seems like the proverbial drop in the bucket. However, the news only came out after the time to cancel membership had passed.

The question then is who will still support the decision to switch next year. Another group that is looking for another buyer are the suppliers who supply Bel Leerdammer. Remarkably, customers in Belgium appear to be more in demand again.

Who's still looking for milk?
Saying goodbye to a processor is not easy, but finding a new buyer also proves to be a challenge. For example, the requirement for almost all processors is pasture grazing. Only A-ware is an exception here. The cheesemaker, with a factory in Heerenveen, also hires dairy farmers without outdoor grazing. In any case, everyone seems welcome and the members of A-ware are very positive about the contact with the processor. 

Bel Leerdammer is also looking for extra liters of milk, but in the Dalfsen area. Deltamilk was looking for dairy farmers, but appears to have chosen to wait a while in December. Extra liters of milk are taken into account and the processor wants to wait for that first.

Farmel still welcomes new members. It is not clear whether there is still interest in switching to FrieslandCampina. In the meantime, Arla has also become active, although they are not actively recruiting members. The same applies to Cono, the dairy farmer is also not actively looking. This increases competition.

Shift in dairy country
It is difficult to say what the dairy landscape will look like. In any case, changes will take place. These changes will be greater than in previous years and therefore present a new challenge for the processors. The dairy farmer is becoming more critical and has a choice. Apparently this is being used.

View the milk price comparison here.The advance prices of recent months now show a stable trend.