Cheese maker Bel Leerdammer announces that it will not adjust the valuation for fat for March. On the other hand, the protein price is going down slightly. Bottom line, this results in a small change and limits the decline in the milk price for the first quarter.
Bel Leerdammer keeps the price for fat stable at €3,10 per kilo for March. Usually a stable price for fat also guarantees a stable protein price, but this month things are different. Like this the protein price drops back to €6,65 per kilo of protein.
Decline limited
As a result of the stable fat price, the decline in the milk price remains limited. This drops back to €35,72 per 100 kilos, with an annual supply of 600.000 kilos of milk. This is a decrease of €0,35, which brings the milk price to €35,37 per 100 kilos (at 4,41% fat and 3,47% protein).
With a production of 900.000 kilos of milk, the milk price is €35,68 per 100 kilos and 1,1 million kilos of milk translates into a milk price of €35,79 per 100 kilos. The levy is included in the milk price DairyNL and quality settled, but not VAT.
The first quarter
Now that the milk price for the month of March is known, the result for the first quarter of 2018 can be calculated. At standard levels and 900.000 kilos of milk, this amounts to a price of €36,52 per 100 kilos. It is a plus of €1,94, or 5,6% compared to 1 year earlier.
If the result is compared with the last quarter of 2017, it is a decrease of more than 11%. However, the milk price usually performs less well in the first quarter than in the last quarter of the previous year.
Premium for milk
At Bel Leerdammer, dairy farmers have the opportunity to earn a premium of €0,15 per 100 kilos through partial grazing. Full grazing yields €2. Another way to earn a premium is sustainability. This may result in a surcharge of €0,60 per 100 kilos.
Have a look at milk price comparator.The fat and protein price in the milk price of Bel Leerdammer.