The pressure on the dairy market is extremely great, which means that milk prices are no longer out of reach. Following FrieslandCampina, A-ware and Bel Leerdammer have also announced the milk price...
A-ware reduces the basic milk price for April by €0,73 to €32,19 per 100 kilos. The fat and protein prices are €3,86 and €4,42 per kilo respectively. Including bonuses and premiums, which are related to the Albert Heijn concept, the milk price rises to €36,94. This is calculated for an annual supply of 1 million kilos and 4,41% fat and 3,47% protein.
Bel Leerdammer also reduces the basic payout price for March by €0,74 to €34,71. In the milk price comparator from Boerenbusiness This puts Bel below FrieslandCampina. Because Arla and DOC Kaas kept the milk price stable for April, the distance with last-place A-ware has now increased to more than one euro. So quite a few shifts are taking place.
No surprise
The reductions come as no surprise. There has been a devastation in the dairy market in recent weeks. Prices have fallen extremely hard, especially this week. Powder, butter and cheese prices are dropping so quickly that... tension in the market has now risen quite high. For example, the DCA quotation for skimmed milk powder has fallen by €760 to €1.890 per tonne since the start of the corona crisis in China.
With a lack of demand, stores fill up quickly. Processors are also concerned about staffing levels. In the meantime, milk production is only increasing, which is unfortunate in these times of crisis. The pressure on milk prices will therefore continue in the coming months. The corrections mentioned are probably just the beginning.