Inside Milk
Less milk, but a higher milk price
The milk price of Vreugdenhil Dairy Foods will continue to improve in July, but whether it is enough to compensate for the lower levels remains to be seen. The supply is also described as 'quite lower'.
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The upward trend that started in June continues in July. Once again, €1 is added to the price, which therefore exceeds the long-term price average comes true. Since 2016, this average has stood at €32,22 per 100 kilos. This includes an annual supply of 600.000 kilos of milk (4,41% fat and 3,47% protein).
More expensive milk fat
The protein price will increase in July to €3,45 per kilo of protein, a plus of €0,20. The price for fat rises to €5,50 per kilo of fat, which is an increase of €0,05. Once again, the powder producer has succeeded in achieving one of the higher prices for milk fat.
33,02
euro
Due to the increases in the prices for protein and fat, the milk price increases by approximately €1,06 per 100 kilos. With an annual supply of 900.000 kilos of milk, this guarantees €33,02 per 100 kilos in July. A delivery of 1,1 million kilos of milk translates into a milk price of €33,19 per 100 kilos.
The question, however, is whether the higher prices for the milk components are sufficient to compensate for the lower levels. Also signals the processor a 'considerably lower' milk supply. The prospects for forage harvesting are also not very promising.
Premiums and allowances
The milk price includes the levy for ZuivelNL and a quality surcharge. Premiums and allowances can be earned on the basic milk price. These can amount to €2,10 per 100 kilos. Of this, €1,50 can be earned through grazing and €0,60 through sustainability. If there is partial grazing, this is valued at €0,25 per 100 kilos. From 2018, dairy farmers who practice grazing will receive the premium monthly.
The milk price is currently above the long-term average.