Inside Milk
Milcobel deducts more than 3 euros from milk price
The Belgian dairy cooperative Milcobel is cutting the milk price sharply in March. A write-down that is undoubtedly related to the corona crisis.
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The milk price for March drops by €3,20 to €32,72 per 100 kilos, based on the standard Dutch contents (4,41% fat and 3,47% protein) and an annual supply of 1 kilo. Milcobel itself communicates a real milk price paid of €30,45 for a milk yield of 650.000 per year. Milcobel had also slightly reduced the milk price in February.
Heavier than in the Netherlands and Ireland
The Belgian dairy cooperative is reducing the milk price more sharply Dutch and Irish processors have done so far. The Dutch 'counterpart' FrieslandCampina reduced prices by €1,50 spread over March and April. Ireland's Glanbia reduced prices by €2 in March.
Yet Milcobel is not overly negative, given that the raw material value of milk (based on skimmed milk powder and butter) lost €3,40 in March, prompted by a drop in demand due to the corona crisis. It is expected that Dutch processors will continue to reduce costs in the coming months. In Ireland, reductions of up to 20% are expected.