Inside Milk
FrieslandCampina plus and break through the 40 euro limit
FrieslandCampina increases the guaranteed price for November by €1,75 per 100 kilos to €41,25 per 100 kilos. With this, the cooperative beats itself compared to the previous month, when it increased by €1,50.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The current increase, like the previous one, consists of a combination of expected market developments and corrections. According to FrieslandCampina, the higher milk prices can mainly be attributed to basic dairy prices, which continue to rise sharply (+€1,09). In addition, a positive correction of €0,66 has been processed due to higher than expected reference milk prices in recent months.
Last month, the increase of €1,50 consisted of €0,50 corrections and €1,00 the consequences of rising basic dairy prices.
With the adjustment of the guaranteed price, FrieslandCampina has taken significant steps upwards in recent months. Similar increases have not been seen since 2016.
Arla, the major European competitor, is taking a more cautious approach to milk price increases, as can be seen from the Dutch Milk price calculator van Boerenbusiness.
According to the comparator, the basic milk price for November comes from Boerenbusiness works out at €40,48 per 100 kilos; the maximum milk price is €43,98 per 100 kilos. Arla remains more than €3,00 per 100 kilos below this. Other companies will publish their milk prices for the coming month early next week.
Organic milk price increase more modest
FrieslandCampina is increasing the organic milk price by a much more modest amount. For November, the organic guaranteed price will increase by €0,25 to €50,75 per 100 kilos. That is as large an increase as was implemented last month. According to FrieslandCampina, the organic dairy market remains good, but is not keeping pace with the conventional dairy market.
According to the Boerenbusiness Dutch Milk price calculator FrieslandCampina's organic milk price this month amounts to €52,99 per 100 kilos, compared to €51,58 at Arla (but some surcharges may still result in a higher price).