Inside Milk
Milcobel turns 180 degrees with new milk line
The Belgian dairy cooperative Milcobel plans to introduce a new milk line. This step is remarkable, given that Dirk Ryckaert, the chairman of Milcobel, said 1 year ago that separating milk flows can lead to a loss of efficiency.
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The new milk line is called 'Consumer Product Service' (CPS). The requirements for dairy farmers who want to qualify include grazing and feeding GMO-free feed. Eddy Leloup, spokesperson for Milcobel, says that dairy farms must also be visitable and representative.
Discussions took place with the members of the cooperative in December and the Milcobel organization is now finalizing the details. The company expects the first products from the new milk line to hit the shelves in the summer of 2019.
180 degree turn
The announcement of the new milk line is in a way striking. Dirk Ryckaert, the chairman of the board of directors, resigned in February 2018 Cattle breeding know that there is a proliferation of new milk flows. "New milk flows mean more costs and we have to ask ourselves whether we want that as dairy farmers."
- Eddy Leloup
When asked by the group why Milcobel has changed its mind, Leloup explains that changes are taking place within retail. "There is a lot of pressure from social organizations and consumers are also demanding more. Other dairy processors have already taken this path. We also have to take our competitive position into account," Leloup reports.
10% of the milk urine
Nothing will change for most members of the Belgian dairy group. The 'CPS programme' concerns approximately 10% of the total milk supply to Milcobel and is in that sense relatively small. In 2017, the milk supply amounted to 1,5 billion liters of milk.
Dairy farmers who supply CPS milk can also count on a so-called 'expense reimbursement'. The additional costs that dairy farmers have to incur to meet the requirements are approximately €0,80 per 100 kilos of milk. The premium that Milcobel offers in return is slightly higher. This is to make it attractive for dairy farmers to participate in the initiative. The exact amount of the premium has yet to be determined.
Milk price for December down
Milcobel's advance milk price for December has been reduced by €1,06 to €36,96 per 100 kilos of milk (based on 4,41% fat and 3,47% protein and an annual delivery of 800.000 kilos). The reduction is due to a write-down on fat and protein. These components both decreased by €13,16 to €421,05 per 100 kilos.