Inside: Dairy Market
Bel Leerdammer also closes the year on a high
The Dutch branch of Groupe Bel, Bel Leerdammer, closed the year on a high note. Meanwhile, talks have taken place in France for 2018. Is it an indication of the trend that the milk price will follow?
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The cheese maker from Schoonrewoerd announced in December that it would not adjust the valuations for fat and protein. This means that the price for fat remains at €3,75 per kilo and protein remains at a price of €7,45 per kilo. This means that the appreciation for protein remains relatively high, compared to that of other processors.
40,83
euro
Stable milk price for the third month in a row
For the third month in a row, the milk price (with an annual delivery of 600.000 kilos) maintain a price of €40,83 per 100 kilos. This at 4,41% fat and 3,47% protein. A delivery of 800.000 kilos yields €41,06 per 100 kilos and an annual production of 1,1 million kilos translates into a milk price of €41,25 per 100 kilos. The prices are exclusive of VAT, but include a levy of €0,23 for the ZuivelNL scheme. This amount will decrease to €2018 per 0,07 kilos in 100.
The publication of the milk price marks the end of 2017. On average, the milk price is €37,10 per 100 kilos, based on an annual supply of 600.000 kilos of milk. This was €28,11 per 100 kilos a year earlier, which represents an increase of 32%.
Surcharges
The milk price does not include supplements, because not every livestock farmer receives them. A total of €2,60 in premiums can be earned at Bel Leerdammer. Of this, €2,00 can be earned through grazing and €0,60 through sustainability. The grazing premium is paid monthly. The sustainability allowance will be paid out in March of the new year.
350
euro
While producer organizations are not yet used in the Netherlands, this is happening in France. This concerns the Bel West Producers Association (APBO). About 80% of the livestock farmers who supply Bel have gathered there.
An agreement was reached between Groupe Bel and the APBO in mid-December. It states that the average objective benchmark is set at €350 per 1.000 liters. The APBO promises to let the cows graze for at least 150 days and receives a bonus of €1.000 per month per 21 liters of milk. Perhaps this also indicates the trend for the Dutch milk price. 
The average milk price for 2017 was €37,10 per 100 kilos of milk.