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Inside Milk

Vreugdenhil wants more own milk and raises milk price

10 September 2021 - Klaas van der Horst

Vreugdenhil Dairy Foods wants to attract up to 100 million kilos of milk. The company wants to use this to increase its own milk supply.

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The search area for new suppliers is located in a radius of approximately 150 kilometers around the branches in Gorcum and Scharsterbrug, with the focus on the first location. The logical explanation is that the Gorcum branch has a larger capacity.

Milk supply director Patrick Besten: "We see that our production is growing further. We have a milk pool of 700 million kilos, but process 1,4 billion kilos per year. We buy more milk on the market, but want to become less dependent on it. That is why we want to increase our own milk pool."

Do not purchase from the company
Vreugdenhil has already hired several dairy farmers in recent times and is open to discussions with more interested parties, according to Besten. "Interested companies must suit us and meet conditions. But there is sufficient growth opportunity." Dairy farmers do not have to buy into the company, as they do with a cooperative.

For the month of August, Vreugdenhil has increased the current milk price by €1,16 compared to July 2021. For a delivery of 1.100.000 kilos of milk, the milk price for August will be €38,34 per 100 kilos of milk (excluding VAT, at 4,42, 3,57% fat and XNUMX% protein), the company reports. This price includes premiums for quality, sustainability and grazing.

Winter allowance
August is the last month before the winter allowance is paid. This amounts to €3,90 per 100 kilos and is in addition to the standard milk price in the months from September to January. Viewed for the entire year, this roughly equates to a plus on the milk price of €1,63 per 100 kilos.

According to the calculation in the Boerenbusiness Dutch Milk price calculator Vreugdenhil's basic August milk price amounts to €36,70 per 100 kilos.

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The maximum milk price is €1,50 per 100 kilos higher thanks to a grazing allowance of that amount, resulting in €38,20 per 100 kilos.

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