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Inside Milk

What is the average milk price in the Netherlands?

14 September 2020 - Wouter Baan

After the corona crisis severely impacted milk prices, many processors are experiencing a cautious recovery. How does the average milk price in the Netherlands respond to this?

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Vreugdenhil Dairy Foods announced at the end of last week that it would keep the milk price the same for August. This means that the milk price remains unchanged for the fourth month in a row, making the processor the only one that has not yet increased the milk price after the start of the corona crisis. The basic milk price remains at €31,98 per 100 kilos (based on an annual supply of 1 million at 4,42% fat and 3,57% protein). Including bonuses and premiums for grazing and quality, the payout price can amount to a maximum of €34,08.

Bel Leerdammer has increased the milk price for August by €0,85 to €32,55, bringing the processor back into the top 3 of the milk price comparator from Boerenbusiness. Including bonuses and premiums, the payout price can amount to €36,65 per 100 kilos, as calculated based on the above conditions.

Average milk price
The calculated average milk price in the Netherlands (excluding bonuses) increased in August for the second month in a row, by 42 cents to €32,52 per 100 kilos. There is no question of a rapid price increase. Historically, an upward movement can be seen in the second half of a year, but for the time being developments in the dairy market do not give rise to this. The DCA quotations (for butter, cheese and milk powder) may have been on the rise in September, but things are not going fast.

Trend September
In addition, the raw material value of raw milk, as calculated every month by the German Food Economics Institute, showed a slight decrease in August. Based on the valorization of skimmed milk powder and butter, this dropped by €0,20 to €31,30 per 100 kilos (at 4% fat and 3,4% protein). The trend for milk prices September has been different so far. While A-ware increased, FrieslandCampina reduced. Arla and DOC Kaas kept the payout price unchanged.

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