Inside Milk
FrieslandCampina in approach with milk price
FrieslandCampina is increasing the guaranteed price for October by €1.50 to just under €40,00 per 100 kilos. It is a strong improvement from the previous month. FrieslandCampina also puts competitor Arla in the shadow with this, according to the Boerenbusiness Milk price comparator.
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The new guaranteed price is €39,50 per 100 kilos with 3,57% protein, 4,42% fat and 4,53% lactose and an annual supply of 850.000 kilos. Last month, due to an increase of €0,25, the guaranteed price is €38,00 per 100 kilos. That increase also included a positive correction of €0,10. This time, a correction of €0,50 has been incorporated in the increase, in addition to a conversion of significantly higher basic dairy prices, FrieslandCampina says.
FrieslandCampina's bare milk price in Boerenbusiness Due to the latest increase, the milk price comparator is at a level that has not been reached since 2017.
Arla
Competitor Arla, however, lowered the milk price in September by more than €1,00 per 100 kilos. According to Arla, this was not because of the dairy market per se, but wanted to absorb the increased costs for the company. Last week, Arla announced another price increase of about €0,60 for October. The dairy market continues to be favourable. FrieslandCampina sees even more room for improvement on the basis of the guaranteed price formula.
Dutch Milk price calculator
In Boerenbusiness Dutch Milk price calculator FrieslandCampina's bare milk price for October amounts to €38,73 per 100 kilos with 4,42% fat, 3,57% protein and an average annual supply of 1 million kilos. This is also €1,50 more than before September. The meadow milk price, the bare milk price including meadow supplement, in FrieslandCampina's comparator exceeds €40 for the first time, at €40,23 per 100 kilos.
The maximum milk price, the price that a dairy farmer can achieve if he can collect all premiums and allowances, is €42,23 per 100 kilos of milk at FrieslandCampina for October.
FrieslandCampina determines the guaranteed price every month on the basis of a largely fixed formula. However, the latest increase is also not bad news to keep dairy farmers who are considering giving up on 1 October on board. In terms of base price, FrieslandCampina notes according to de Boerenbusiness Dutch Milk price calculator the highest milk price of this year for the time being.
Organic guaranteed price bounces up
The guaranteed organic price will return to the August level this month and will therefore amount to €50,50 per 100 kilos. For September, it was €50,25. Arla set the organic milk price for October at €50,00 per 100 kilos