Analysis Dutch Milk price calculator
What does which dairy have to offer you?
Many new milk flows have been introduced in Dutch milk processing in recent years. Quite a few dairy farmers have also switched to another buyer. The level of the milk price is often a determining factor in switching processors or switching to another milk flow. But what does a dairy producer have to offer and how can you compare milk prices?
With the milk price comparator of Boerenbusiness. Nl Based on company-specific fat and protein contents and the annual delivery, the basic milk price of the largest processors in the Netherlands can be compared for years. However, the time when the bare milk price is actually the payout price is behind us. That is why the maximum milk price has also been charted in the updated and expanded version of the Milk Price Comparator. In addition, A-ware has been added to the overview with its milk prices.
Emergence of new milk flows
The difference between the basic and the maximum milk price has grown considerably in recent years. For example, the VLOG premium is now an established concept that is received by many dairy farmers. A surcharge for grazing had been established for some time. In addition to generic bonuses, quite a few company-specific milk flows have been added in recent years.
FrieslandCampina, for example, introduced PlanetProof dairy in 2018. Since the start in 2019, more than 600 dairy farmers have started producing for this label. The flagship of A-ware is the Albert Heijn concept, in which more than 300 dairy farmers say they participate. And Cono Kaasmakers has had a distinctive milk flow for many years with Caring Dairy.
Within these milk flows, the delivery space is often limited. To meet the standards of such a milk flow, you have to have a lot to offer as a dairy farmer. It is sometimes claimed that only the 'creme de la crème' of the sector receive the highest premiums. However, a dairy farm that lives close to the factory along the collection route has an advantage in allocating a specific milk flow.
Switch to another processor
The positive thing about new milk flows is that extra efforts on the farm are rewarded with extra milk money. This allows a dairy farmer to distinguish himself from his neighbour. In doing so, the political and social sustainability wishes are fleshed out. Also not unimportant today.
In addition to changes within milk flows, there have been relatively many transfers of dairy farmers in recent years. Especially at Bel Leerdammer and FrieslandCampina, the necessary dairy farmers left the ship. At Bel Leerdammer because of the low milk price. At FrieslandCampina because of the limited growth opportunities and other irritations about the policy pursued.
'Newcomer' A-ware offered a solution and welcomed several hundred new dairy farmers. Others doubted, but remained loyal to their customer. After all, the grass is not always greener at the neighbors, was usually the sober thought.
Compare milk prices
The level of the milk price is not least the reason for a dairy farmer to 'feel at home' with a buyer. Milk prices alone are often difficult to compare, as is often cultivated by dairy processors. Certainly with the proliferation of new milk flows and associated premiums. 's milk price comparison Boerenbusiness provides an overview here.
Call Leerdammer has been going since August leads the maximum milk price comparison† Cono, FrieslandCampina and A-ware follow in place 2, 3 and 4. Over the past 12 months, Cono has earned an average of almost €40 per 100 kilos of milk. This makes the cheesemaker from the Beemster the best payer over a longer period of time.
Major differences between bald and maximum
A-ware is an example of a processor that uses a relatively low basic milk price, but high bonuses within the various milk flows. For example, the gap between bare and a maximum in August was €4,75 per 100 kilos of milk. Arla and Vreugdenhil are processors with relatively small differences between the basic and maximum milk price.
In addition to bonuses, the quantum surcharges differ quite a bit in practice. FrieslandCampina and Cono do not distinguish between large and small suppliers. Other processors do. Arla, for example, increases the quantity surcharge from 6 million kilos. This is because Arla is a Scandinavian cooperative and uses the same milk price system in the various European countries. Homeland Denmark, in particular, has many mega-dairy farms, which are rewarded for their size.
No generic conclusion
It cannot be concluded generically with which buyer the dairy farmer is best off. After all, there is often only limited delivery space in company-specific milk flows. Certain processors also collect regionally. For this nuance, the selling price must be seen in the light of the cost price. And that in turn depends on the requirements within a certain milk flow.
This does not alter the fact that it is good to compare milk prices. Regardless of whether you are considering switching to another processor or not. Last but not least, the overview also offers dairy farmers a glimpse into whether the grass at the neighbors is actually greener.
Calculate the milk prices of the processors yourself based on the fat and protein contents and annual delivery of your company? Click here to go to the Milk price comparator and discover the differences. (This comparator is part of the Milk & Feed Pro subscription and you can try it for free for 7 days).
Wouter Job
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