Who paid the best milk price in 2020?

Made earlier this week Vreugdenhil Dairy Foods the milk price for December is known and with this the balance for 2020 can be drawn up. First we zoom in on the average basic milk price for December, which amounts to €34,39 per 100 kilos, calculated at 4,42% fat and 3,57% protein. This is an increase of €0,40 compared to November as a result of an increase at FrieslandCampina that month. The other processors kept the payment prices unchanged in the last month of the year. In January, FrieslandCampina fully corrected the December increase. 

Corona exerted pressure
For the whole of 2020, the average basic milk price in the Netherlands is €33,68 per 100 kilos. This is €1,10 lower than the average for 2019. This decline is almost entirely due to the pressure that the corona crisis exerted on the dairy market. Between mid-March and early May, DCA's milk powder, cheese and butter quotations took a major hit. The panic was enormous, renowned market parties even spoke of the 'worst week ever'. This was followed by a recovery, prompted by good demand from retail and a return of a sense of reality in the market.

When dairy prices fell, milk prices followed suit quite quickly. The fear was that the payout prizes would pass the €30 mark. There were also concerns about whether the milk collection could continue. Ultimately, this fizzled out, when corona infections in Europe dropped considerably towards the summer period. Nevertheless, the average milk price in the Netherlands fell by more than €3 between February and July. In the second half of the year, a significant part of the corona damage was repaired when dairy prices (partially) corrected. 

Average milk prices for 2020
When we look at the milk price comparator Boerenbusiness If you examine the annual averages per processor, it is striking that only Vreugdenhil exceeds the limit of €35 (which does take the winter surcharge into account). The rest is below that. With an annual average of €32,14, the Scandinavian Arla is at the bottom. The milk price comparator, including bonuses and premiums, provides other insights. Albert Heijn's milk flow from A-ware is at the top with an average of €39,31, followed by Cono (Caring Dairy) and FrieslandCampina (PlanetProof). From August, A-ware increased the premium from €0,03 to €0,05 on top of the price of meadow milk, although this is subject to strict requirements. FrieslandCampina doubled the Planetproof bonus to €0,02 in January. Several hundred dairy farmers participate within these milk flows. 

Additional payment?
The milk price comparator provides a good insight into the monthly advance prices per processor, but for the total milk price for 2020, additional payments from the cooperative processors in the list, such as Arla, DOC Kaas, Cono and FrieslandCampina, must also be taken into account. However, those figures are not yet known. At FrieslandCampina the question is whether 2020 will be a supplementary payment, this in connection with the reorganization. The costs for this amount to no less than €175 million, which is largely charged to the operating result of 2020. Due to the corona crisis, the financial result was already under pressure. The 'profit bonus' of the private A-ware is already well known. Suppliers of the cheese producer received €1,50 on top of the basic milk price in December. 

Click here to view the milk price comparator and compare the results based on your personal business situation.