Inside: Dairy Market
Small correction in milk price Vreugdenhil
Vreugdenhil Dairy Foods also managed to limit the fall in the basic milk price over February. However, due to the expiry of the winter milk supplement, the difference with January is good. The processor, on the other hand, manages to keep the average relatively high.
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The valuations for fat and protein are falling for the month of February. A correction of €0,10 is made for both raw materials, resulting in prices of €2,90 and €6 per kilo, respectively. As a result, prices are falling back to levels last seen at the end of 2016.
31,95
euro
Modest drop
As a result of the above minor adjustments, the basic milk price also shows a modest decrease. For example, with an annual supply of 600.000 kilos of milk, this amounts to €31,95 per 100 kilos. The Dutch average of 900.000 kilos of milk translates into a milk price of €32,33 per 100 kilos and 1,1 million kilos of milk guarantees €32,50 per 100 kilos. The prices are exclusive of VAT, at 4,41% fat and 3,47% protein, and include a quality surcharge.
The month of February is also the month in which the payment of the premium stops. This yields a minus of €3,90 per 100 kilos, compared to January. As a result, the milk price drops by €4,69 per 100 kilos.
Payment grazing changes
In total, a dairy farmer can achieve a premium of € 2,10 per 100 kilos from this processor. €1,50 of this can be earned with grazing and €0,60 with sustainability. From 2018, dairy farmers who use outdoor grazing will receive the monthly premium.
The average milk price of Vreugdenhil remains above €36 per 100 kilos.