Guaranteed price down, no new punishment

FrieslandCampina has adjusted the guaranteed price downwards for the fourth time in a row. The relatively small reduction does offer prospects for a rapid bottom below the milk price.

The guaranteed price for June amounts to €32,50 per 100 kilos, a reduction of 50 cents compared to the month of May. Last month the guaranteed price went down by €2, in that light the negative correction for next month is not too bad. On balance, the guaranteed price has lost â4 since February 

At the end of last week, the Scandinavian dairy cooperative Arla also announced the milk price for June to lower. And Fonterra also lowered the forecast for the current season 

Market is picking up again
In the meantime, the mood in the dairy market plagued by the corona crisis is considerably more positive. After a significant downward revaluation in recent months, milk powder and cheese prices started to rise again from mid-May. The relaxed corona measures and the seasonal decline in milk production give the market air.

The DCA spot milk quotation in the Netherlands rose last week by €2,50 to €29,50. The limit of €30 is therefore within reach. German milk is already trading above these levels. Dairy prices in the United States, especially for cheese, making strong progress.

Click here to view the milk price comparator. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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