Inside Milk
Raw material value of milk drops sharply
The milk prices of Milcobel and Vreugdenhil remain unchanged for the month of October, which was already expected. What is striking is that the payment prices of the various dairies are well above the raw milk value of raw milk.
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Milk powder producer Vreugdenhil announces that the fat price is €3,55 per kilo, while the protein price remains €5,60 per kilo. Including the winter surcharge (€3,90 per 100 kilos), the payment price amounts to €37,60 per 100 kilos (with 4,41% fat, 3,47% protein and an annual supply of 800.000 kilos).
The Belgian milk processor Milcobel has also announced that the milk price will remain unchanged. Both the fat and protein prices amount to €4,34 per kilo. With an annual supply of 600.000 kilos of milk, the milk price is €37,80 per 100 kilos.
Raw material value plummeted
With the exception of the guaranteed price from FrieslandCampina, all milk prices stable. The raw material value of raw milk did suffer a significant decline, according to figures from the Food Institute (IFE). This decreased by €3,80 to €31,40 per 100 kilos (4% fat). The depreciation in October explains why some dairy farmers raised the price for November have reduced.
The decline in the value of raw materials is a result of the fact that some dairy commodities made significant losses in that month, in particular the value of milk fat (butter and cream) fell sharply. Although the decline has now leveled off. The value of protein was also under pressure in October, but is now picking up again.