Vreugdenhil leads the way in raising milk prices

Vreugdenhil increases the fat price by €0,05 to €3,15 per kilo. The protein price will increase by €0,35 to €6,20 per kilo. If we calculate with the standard Dutch contents and an annual supply of 1 million kilos, the milk price increases by €1,44 to €36,52 per 100 kilos. This includes the winter surcharge of €3,90 per kilo, which will be paid until January. With pasture and quality bonus, an additional €2,10 can be added. 

Including the increase in October, the milk price has increased by almost €2. The milk price comparator van Boerenbusiness  shows that the milk powder producer is in the lead compared to other processors (such as A-ware, Bel Leerdammer and FrieslandCampina) who have recently increased between €1 and €1,50. A-ware will make a one-off return in December bonus from €1 on top of the milk price. 

Positive powder market
As one of the largest milk powder producers in Europe, milk powder prices naturally weigh heavily on Vreugdenhil. The market is currently positive, both whole and skimmed milk powder have made great strides in recent months. This is due to tight inventories and good demand from China. For example, European exports of skimmed milk powder increased by more than 3% to 2019 tons in the first 25 quarters of 728.000. A new export record is in prospect, especially since demand was also good in the last quarter. 

Expectations on the powder market are also positive for the beginning of 2020. However, competition from New Zealand, which is making its mark on the global powder market, may increase. This is because the milk supply there is now reaching a seasonal peak.