Inside Milk
Vreugdenhil lowers milk price for April
Vreugdenhil Dairy Foods has significantly reduced the milk price for April. The price fall on the milk powder market is apparently hitting hard.
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The powder producer is implementing a reduction of €1,87, bringing the basic milk price to €32,70 per 100 kilos. This price is calculated on the basis of an annual supply of 1 million kilos, with 4,42% fat and 3,57% protein.
Including bonuses for grazing and sustainability, the payout price can be up to €34,80. With the reduction, the payout price drops from the top 3 milk price comparator from Boerenbusiness. It should be noted that this is because the processor applies a winter surcharge, which means that the payment price is higher in the winter months. Over the past 12 months, Vreugdenhil does pay a top-3 milk price.
Plumbing milk powder market
The cause of the decline is easy to guess. The significant write-down of milk powder prices as a result of the corona crisis will undoubtedly hit hard. The European Commission has now opened the private storage scheme for skimmed milk powder and cheese, although there are doubts in the market about the usefulness of this support measure.
The European Milk Board (EMB), for example, considers it better to reduce milk production in Europe. In the meantime, the skimmed milk powder market has found a bottom, shortly above the intervention level of €1.698 per tonne.