Germany asserts itself in organic milk

FrieslandCampina will reduce the basis for organic milk to €49 per 100 kilos in January. It is a minus of €2,75. It is expected that organic milk prices will fall, especially in Germany.

Back to September levels
The price for protein will drop to €799,87 per 100 kilos in January, a minus of €44,89. Fat goes back to €399,93 (a minus of €22,45) and lactose, thanks to a minus of €4,49, amounts to €79,99 per 100 kilos. Due to the declines, the valuation of milk also drops back to the September level. However, there is no surcharge for that month, which means that January's milk yields slightly more. 

For a delivery of 600.000 kilos of milk, the milk price is €50,13 per 100 kilos, a decrease of €3,59 compared to December 2017 (excluding VAT). This includes surcharges and levies, including a levy of €0,07 for ZuivelNL. This is as a result of the 2018 phosphate reduction scheme. FrieslandCampina no longer applies a quantity surcharge, which means that extra liters only yield more milk money by spreading the fixed costs over extra liters of milk.

Decline a little less
The price of organic milk is falling slightly less rapidly than that of conventional milk, but the difference is not large. However, no surcharges or levies are included in conventional milk. It suggests that in conventional milk there is also pressure on the milk price, especially from the German side. 

A conventional dairy farmer receives €36,63 per 100 kilos in January (at 600.000 kilos, 4,41% fat and 3,47% protein). It also means that the gap between the conventional milk price and organic milk price is growing in January. 

View the milk price comparator.Organic milk is also falling in price.