Inside: Dairy Market
Quantum surcharge keeps milk price above 37 euros
The average milk price continues to fall in January. Since not all processors allowed the milk price to fall to the same extent, the damage remains reasonably limited. The quantum surcharge in particular appears to be working out well.
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For the second month in a row, the fat and protein prices at Vreugdenhil turn red. For example, the fat price in January drops by €0,80 to €3 per kilo. This means that the fat price is back at the level of early 2017. Protein has been depreciated from €0,30 to €6,10 per kilo. The winter surcharge (€3,90 per 100 kilos) will remain intact in the first month of 2018.
The changes have an impact on the milk price. At one annual supply of 800.000 kilo of milk (at 4,41% fat and 3,47% protein) is now €36,91 per 100 kilos, compared to €41,05 per 100 kilos in December. This excludes VAT and surcharges for sustainability and grazing, but includes the PZ tax. For a delivery of 1,1 million kilos, the milk price is €37,19 per 100 kilos.
Major changes
Vreugdenhil thus joins FrieslandCampina, Bel Leerdammer and DMK/DOC Kaas. These processors also recorded significant price changes in January. For example, FrieslandCampina reduced by €3,82, Leerdammer recorded a reduction of €4,14 and the milk price at DMK fell by €5,01 per 100 kilos. a-ware does not announce fat and protein prices, but did announce that it would reduce the milk price for January by €4.
Only Milcobel, Arla and Cono wrote down smaller corrections. At Milcobel this was partly because the processor had started lowering the milk price earlier. According to Dutch values, this amounts to €600.000 per 32,35 kilos for an annual delivery of 100 kilos. Arla reduced by €3,50 to €33,66 per 100 kilos.
Average milk price decreases
As a result of the changes, the average milk price for January drops to €36,07 per 100 kilos (at 600.000 kilos). This is a decrease of €3,61 per 100 kilos compared to December. The spread between milk prices is increasing. What helps are the quantity surcharges. For example, the milk prices of Bel Leerdammer and Vreugdenhil are still above €1,1 for a delivery of 37 million kilos.
De first milk prices for February show that prices will fall even further.
The average milk price shows a decrease in January.