Inside: Dairy Market
Organic guaranteed price again above 50 euros
While the guaranteed price for regular milk at FrieslandCampina fell further in March, the organic guaranteed price set off an increase. What does this lead to?
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With an annual supply of 600.000 kilos of milk, the organic guaranteed price for March is €50,50 per 100 kilos. This is based on 3,37% protein and 4,41% fat, excluding VAT. Protein is €824,36 per 100 kilos in March and the fat value is €412,18 per 100 kilos. This while €82,44 per 100 kilos is paid for lactose.
Correction priced in
The increase means that the guaranteed price has been above the €50 limit on paper since November. However, in March a seasonal levy of €1 per 100 kilos of milk applies. This levy will be increased to €2 in April, while €4 will be deducted in May and July and €5 in June. The seasonal surcharges will apply again from August.
Such a level has not occurred in recent years (in the month of March). A correction is priced into the increase. This is due to milk prices estimated too low by a number of reference companies in January.