Inside Milk
Big downer for organic milk price
FrieslandCampina's guaranteed organic price shows a strong downward revaluation in August. As a result of the correction, the price is at the lowest level for the month of August in 5 years. In addition, the prospect of a wide range does not improve the prospects.
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€2 will be deducted from the price for organic milk in August. FrieslandCampina indicates that €1,61 of the write-down is the result of overestimated prices for the previous months. This concerns the prices of reference companies, which form the basis for the guaranteed price.
Still higher milk price
It provides dairy farmers with a guaranteed price from €44,75 per 100 kilos. If deductions and surcharges are taken into account, this translates into a milk price of €44,90 per 100 kilos (with an annual supply of 600.000 kilos of milk, 4,41% fat and 3,47% protein).
The rising price is a direct result of the seasonal arrangement. For example, the month of July has a deduction of €4 per 100 kilos, but in August €1 is added to the price. This corrects the decrease shown in fat, protein and lactose. Fat drops to €365,25 per 100 kilos, protein comes to €730,49 per 100 kilos and lactose has a price of €73,05 per 100 kilos.
Wide range
FrieslandCampina does not make any statements about the state of affairs in organic milk, but other processors do. These indicate that the supply is too high in relation to the demand. Since the feed supplies On organic farms are smaller, purchasing feed is difficult. This means that the chance of fewer liters of milk increases rapidly; especially under these dry conditions. However, it is still insufficient to improve mood.
The price is now at its lowest point, compared to the previous 5 years.