Inside Milk
Bare milk price in August rises faster than pasture price
The average basic milk price of the 6 largest Dutch processors increased by 35 cents per 100 kilos in August compared to July. The milk price including grazing increased by only 2 cents per 100 kilos
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This is evident from the DCA Milk Price Comparator. The calculated average (basic) milk price was €37,08 per 100 kilos. Including grazing, the calculated average milk price was €38,75 per 100 kilos.
The limited increase in the milk price including grazing is caused by the disappearance of the extra seasonal allowance for grazing from Royal A-ware. This is €2,00 per 100 kilos higher in the months of May, June and July and then falls back to the regular level.
The four major players, FrieslandCampina, Royal A-ware, Bel Leerdammer and DOC Kaas, are now close to each other in terms of payout in the meadow milk segment. Vreugdenhil is close to that, but still has to do it in August without a winter surcharge of €4 per 3,90 kilos.
More than 80% of all dairy farmers receive a milk price including grazing allowance. A smaller portion also receives the top allowances for PlanetProof and Albert Heijn Beter voor Koe, Natuur en Boer, among others. A residual group receives little or no allowances.
All current average milk prices are considerably higher than the average milk price over the past 12 months. The tight milk supply and good demand have recently driven up prices sharply.
