Royal Aware

Inside Milk

End-of-year bonus for dairy farmers A-ware

2 December 2019 - Wouter Baan

Dairy farmers who supply to A-ware receive an 'end-of-year bonus' in December. In addition, the milk price is also provided with a plus.

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The cheesemaker has informed dairy farmers that they will receive a one-off €1 on top of the milk price in December. The reason for this extra is not given. It may be a compensation for the relatively low basic milk price that A-ware paid out in recent months. There was also some dissatisfaction about this among some suppliers.

In addition to the bonus, the fat price will increase this month by €0,057 to €3,859 per kilo. The protein price remains at €4,632 per kilo. With an annual supply of 1 million kilos, the basic milk price increases by €0,25 to €32,92 per 100 kilos. A-ware is therefore in the milk price comparator narrowly above DOC Kaas, which also increased the milk price for December. Including bonuses and premiums, the current milk price can amount to a maximum of €37,67 per 100 kilos. That price is for the approximately 300 dairy farmers who supply within the Albert Heijn concept.

Small steps
A-ware's increase is now the fourth in a row and is undoubtedly related to the rising cheese prices during that period. The dairy producer chooses to increase the milk price in small steps from month to month. Since August, the milk price has increased by €1,20 on balance.

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