Milk price Milcobel is still below 30 euros

The dairy cooperative with approximately 700 members maintains a milk price of €29,42 per 100 kilos for October, a price level that has not changed since April. The underlying fat and protein prices are both €3,55 per kilo.

After the enormous price fall on the dairy market this spring, a recovery followed in the third quarter. Many dairy factories in the Netherlands subsequently increased the milk price. The average basic milk price in the Netherlands increased by €2 between June and November to €33,95 per 100 kilos. Payout prices also rose in neighboring countries such as Ireland and Germany.

Reorganization
The Belgian Milcobel sees no room for this at the moment. The company aims for a higher milk price and is therefore carrying out a reorganization. This spring, in the person of Nils van Dam, one new CEO appointed and the arrival of a new CFO was recently announced. The aim of the reorganization is cost restructuring, which should subsequently result in a higher milk price. As a result, a loss-making processing location in Schoten was closed.

Take steps
It is logical that these steps do not immediately result in a higher milk price. Such a drastic reorganization process takes time and the corona crisis is inconvenient. Nevertheless, the patience of Milcobel's suppliers is being seriously tested with a payout price below €30.

In LTO's milk price comparison, Milcobel was the only processor below that limit in September. Looking at the raw material value of milk, based on skimmed milk powder and butter, it now amounts to approximately €32. In this regard, Milcobel still has steps to take in the coming months.