Inside Milk
FrieslandCampina puts a quarter on milk price again
FrieslandCampina has increased the guaranteed price for September by a quarter. This means that the cooperative dairy group has chosen a completely different course with the milk price than Arla Foods, which has actually reduced the payment for September.
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FrieslandCampina has set the guaranteed price for September at €38,00 per 100 kilos of milk at 4,42% bet, 3.57% protein and 4,53% lactose, excluding VAT, for an annual supply of 850.000 kilos of milk. This is €0,25 per 100 kilos more than the guaranteed price for August. This was also an increase of a quarter. The guaranteed price does include a positive correction of €0,10 per 100 kilos due to slightly higher reference prices than expected, FrieslandCampina explained in a statement. The dairy group bases the guaranteed price on the payment prices of a group of its competitors.
Milk price continues to move around current level
FrieslandCampina is therefore choosing a different direction for September than Arla, which actually reduced its milk price by more than euros up to €35,55 per 100 kilos of milk at 4,2% fat and 3,4% protein, including premiums for quality, VLOG and climate. The average guaranteed price for 2021 will be €36,58 per 100 kilos until September, FrieslandCampina reports. FrieslandCampina expects that "milk prices will continue to move around the current level in the coming period." This forecast is quite striking, as the DCA dairy quotations for Northwest Europe have been on the rise in recent weeks.
In Boerenbusiness Milk price comparator FrieslandCampina's basic milk price for September amounts to €37,23 per 100 kilos, also €0,25 more than a month earlier. After a small dip, the milk price is now back at the highest level reached in June. The basic milk price applies to milk with 4,42% fat, 3,75% protein and an annual supply of 1 million kilos. The maximum milk price, i.e. the basic milk price including all possible allowances and premiums, amounts to €40,73.
Positive correction, yet lower organic milk price
FrieslandCampina's organic milk price for September is €50,25 per 100 kilos, a decrease of €0,25 compared to August. This applies to organic milk protein (3,57%), fat (4,42%) and lactose (4,53%), excluding VAT and for an average delivery of 550.000 kg of milk per year. Although FrieslandCampina indicates that the market for organic milk is stable, the decline is steep. Because the falling guaranteed price includes a positive correction of €0,54 per 100 kilos due to the higher reference prices in the current period.