Inside: Dairy Market

Milk price Arla Netherlands dips below 35 euros

22 December 2017 - Herma van den Pol

Arla Foods Amba announced that it would significantly lower the milk price. Dairy farmers in the Netherlands also feel this and see the milk price dip below the €35 limit per 100 kilos. It does not bode well for FrieslandCampina's guaranteed price.

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Arla sounds the starting signal with the announcement of the first milk price for January 2018. For Arla this involves a reduction of €2,50 per 100 kilos. The British branch can contain the damage through, among other things, a favorable currency. In the Netherlands, the minus of €2,50 is not spared.

Fat price up slightly
The price for fat rose to €4,27 per kilo in January, but the value for protein fell to €4,69 per kilo. It reflects the market. The changes translate into a milk price of €33,70 per 100 kilos (with an annual supply of 600.000 kilos, with 4,41% fat and 3,47% protein). This price excludes VAT.

33,70

euro

milk price for January

Not only is the milk price for conventional milk dropping, organic milk also yields less. However, this is a minimal correction and the milk price (with an annual supply of 600.000 kilos of milk, with 4,41% fat and 3,47% protein) drops to €45,76 per 100 kilos. It is a minus of €2,06 per 100 kilos, compared to December 2017. This includes a fat price of €5,73 per kilo and protein yields €6,31 per kilo. 

It will be exciting by how many euros FrieslandCampina will reduce the milk price. It is certain that it will go down. This is because DMK has also announced that the milk price will fall. Which means that 2 important references are already writing lower prices. 

Surcharges
ZuivelNL's levy will drop to €2018 per 0,07 kilos in 100. This is included in the milk price calculation. Separately, €1 can be earned with GMO-free milk, €0,50 for pasture grazing and a bonus can be achieved with its own sustainability program. Because the bonuses do not apply to every dairy farmer, they are not included in the calculation of the milk price.Milk price drops below €34 per 100 kilos.

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