Inside Milk
Vreugdenhil reduces fat and increases protein price
The milk price of Vreugdenhil will go down in November. The milk powder producer raises the protein price, but lowers the milk fat payment.
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With an annual supply of 800.000 kilos, the basic milk price (4,41% fat and 3,47% protein) amounts to €36,80 per 100 kilos. This includes the winter surcharge of €3,90 per 100 kilos. Compared to October, this is a reduction of €0,80 per 100 kilos.
The downward movement is a result of the fat price, which drops by €0,30 to €3,15 per kilo. The protein price, on the other hand, is increasing, by €0,15 to €5,75 per kilo.
Milk protein attracts
The higher protein rice and lower fat price symbolize the situation on the dairy market. For example, butter and cream prices have fallen (significantly) in recent months. The valorization of milk protein is actually on the rise.
For example, the ZuivelNL quotation for skimmed milk powder rose last week by €40 to €1.660 per tonne, the highest level this year. There still seems to be upside potential, because on the futures market (EEX) records skimmed milk powder at higher levels than achieved in the physical market.
Various parties are also more positive about the pricing of skimmed milk powder in 2019. This is partly due to the fact that intervention stocks have shrunk considerably.
Grazing premium
In addition to the milk price, premiums can be earned at Vreugdenhil: premium for grazing (€1,50 per 100 kilos) and a sustainability premium (€0,60 per 100 kilos).
Click here to view the milk price comparison.