Inside: Dairy Market
Min in fat depresses milk price Vreugdenhil
The milk price of Vreugdenhil takes a step back in December under the influence of a minus on fat. Protein also yields slightly less, but the decrease is smaller. Despite the changes, the milk price remains above €40 per 100 kilos.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
For the first time since February 2017, Vreugdenhil is lowering the milk price. The fat rating in particular takes a step back and drops from €4,05 to €3,80 per kilo, a minus of €0,25. The protein price drops by €0,10 to €6,40 per kilo. December still counts as a month with winter milk, which results in a surcharge of €3,90 per 100 kilos.
40,78
euro
Milk price drops
The changes result in a milk price of €40,78 per 100 kilos (at 4,41% fat, 3,47% protein and an annual supply of 600.000 kilos of milk). The price excludes VAT and surcharges for sustainability and grazing, but includes the PZ tax. A delivery of 800.000 kilos translates into a milk price of €41,05 per 100 kilos and 1,1 million kilos of milk yields €41,33 per 100 kilos.
Compared to November, the milk price has decreased by €1,45 per 100 kilos. As a result, the milk powder producer (with an annual supply of 600.000 kilos) has to give way to the two cheese makers. However, as a dairy farmer supplies more milk, Vreugdenhil's milk price improves.
Payment grazing changes
In total, a dairy farmer can obtain a premium of €2,10 per 100 kilos from this processor. Of this, €1,50 can be earned through grazing and €0,60 through sustainability. From 2018, dairy farmers who practice grazing will receive the premium monthly.
Now that the milk price for December is known, the interim score can be drawn up. Including the winter bonus, the milk price amounts to €37,20 per 100 kilos. This was still €27,40 per 100 kilos last year, an improvement of just under 36%. It highlights how prices can change in 2 years.
The average milk price for the whole of 2016 and 2017 was €32,30.