DMK wants to test fixed milk price at DOC in 2022

More than a year ago, in the summer of 2020, a pilot project was started. The price of 105 million kilos of milk has now been fixed, DMK reports member magazine Milchwelt. That is not much in a total milk pool of 6,6 billion kilos of processed milk, but according to DMK interest is growing. Members can commit a maximum of 30% of their monthly supply for a maximum of twelve months.

Trade twice a month
Members can participate via the DMK Online Platform Fixed Price. According to DMK, there was initially a lot of hesitation, because the milk price was low and unattractive to tender for. Trading can now take place twice a month. The prices are linked to the quotations for butter and milk powder on the EEX in Leipzig.

DMK does not want to say whether it has so far earned the participants extra milk money, or whether they have beaten DMK's regular milk price thanks to fixing the price. "The participants have secured part of their milk for an above-average price," it is stated. Furthermore, the tool is not a means of achieving a higher milk price as a priority than others. It is mainly intended to provide more financial security for dairy farmers. Banks are also positive, because a farmer can demonstrate that he can pay his running costs and has enough liquidity, according to DMK.

Next year, DMK also wants to introduce the tool in the Netherlands. However, this is a bit complicated in terms of regulations and therefore takes time. It may be a small consolation for the DOC members that their DMK colleagues in Germany have already carried out test work and that the teething problems have been removed from the system, DMK suggests.