Inside Milk
DOC raises milk price, despite uncertain market
There is no clear direction in milk prices for March. Where FrieslandCampina lowered the guaranteed price, DOC Kaas is increasing the milk price. This despite the recent drop in cheese prices...
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The cheesemaker from Hoogeveen, which is part of the German dairy cooperative DMK, increases the basic milk price for March by €0,53 to €33,25 per 100 kilos. This price is calculated on the basis of an annual supply of 1 million kilos at 4,41% fat and 3,47% protein. The fat and protein prices are €4,337 per kilo. Including bonuses and premiums for grazing, vlogging and sustainability, the milk price can rise to a maximum of €36,50 per 100 kilos.
Plummeting cheese prices
The increase can be seen in light of a positive cheese market in recent months. The DCA quotation for Gouda cheese recently exceeded €3.150 per tonne. However, in recent weeks the quotation has fallen significantly to just above €3.000 per tonne. The reason for the price fall is the outbreaks of the coronavirus in China. This creates uncertainty in the dairy trade and results in lower prices. It is also very uncertain how the dairy market will move in the coming weeks now that seasonal milk production in Europe is also increasing.
Fluctuating milk prices
Partly due to the uncertainty, no consistent trend can be discovered in milk prices. For example, FrieslandCampina reduced the guaranteed price for March in view of the uncertain prospects. The Scandinavian dairy cooperative Arla speaks of an uncertain market, but nevertheless increased the milk price.
In milk price comparator from Boerenbusiness Despite the increase, DOC Kaas narrowly defeated Arla in March. FrieslandCampina's milk price is well above DOC Cheese and Arla.