Inside: Dairy Market

Bel Leerdammer keeps milk price above 34 euros

3 May 2018 - Herma van den Pol

The milk price of Bel Leerdammer will decrease further in April. It is the fourth decline in a row since December. Despite the reductions, the milk price, with an annual supply of 600.000 kilos of milk, is still able to maintain itself above a price of €34.

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The price of fat will drop from €3,10 to €3 per kilo of fat in April protein price goes back to €6,40 per kilo. Due to the adjustments in the prices of fat and protein, the milk price for a delivery of 600.000 kilos of milk (with 4,41% fat and 3,47% protein) amounts to €34,06 per 100 kilos. It is a reduction of €1,31 per 100 kilos. This includes a levy for ZuivelNL, but excludes VAT.

Cheesemakers pay the most
For an average Dutch company, with a production of 900.000 kilos, the price is €34,27. DOC Kaas and FrieslandCampina recorded €32,18 and €33,72 per 100 kilos respectively for the month of April. A-ware paid a milk price of €800.000 per 35,46 kilos (at 100 kilos).

It is not yet known how the quantity regulation will work out for a delivery of 900.000 kilos of milk, but it is also clear that they are taking the lead. All prices exclude premiums for special milk flows. 

The milk supply reaches its highest point in May. Cheese prices have firmed up and increased further in recent weeks. The question is whether the cheese maker has sufficient processing capacity to prevent milk from having to be sent to products with a lower valorization and losses being incurred. 

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.

View the milk price comparator.The reductions in Bel Leerdammer's milk price continue. 

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