How competitive is the milk price of Vreugdenhil?

All processors within the milk price comparator van Boerenbusiness implemented an increase for the month of October. Vreugdenhil does not do that and in the previous months there was no increase. The winter surcharge of €3,90 per 100 kilos was added in September, but that is a standard item that is not related to market conditions.  

Average above €35
The basic milk price at Vreugdenhil (including winter supplement) for October is €35,88 per 100 kilos. This is calculated based on 4,42% fat, 3,57% protein and an annual supply of 1 million kilos. This puts Vreugdenhil at the top in the milk price comparator, but the result is somewhat flattered due to the winter bonus. Including the bonuses for grazing and quality, the milk price can rise to just €38.

To objectively compare Vreugdenhil's milk price with other processors, it is best to look at the payment price over a longer period. If we take the average of the past 12 months, Vreugdenhil takes the lead in the milk price comparator without bonuses and premiums. Over that period, the basic milk price averages €35,11 per 100 kilos. This is more than €1 higher than, for example, FrieslandCampina. 

No additional payment 
With the establishment of Holland Dairy Producers Vreugdenhil's milk price is under extra scrutiny. This supplier association advocates, among other things, a higher payment price. Of course, the level of the milk price is always up for debate, but Vreugdenhil's basic milk price is not doing too badly so far in 2020 compared to the rest. At the same time, we should not forget that there are no additional payment arrangements at Vreugdenhil, where other (cooperative) processors do.