Inside Milk
Belgian dairy fights exciting last round
Cooperative Milcobel is trying to knock out the last round of price increases this year with an increase of €5,00 per 100 liters of milk before December. The milk price at standard components therefore exceeds that of Royal A-ware.
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In the meantime, the LDA cooperative is increasing the (advance) milk price for November by €2,50 per 100 liters to a standard price of €39,00 per 100 liters. This cooperative only needs to increase the December price by €3,50 to match the other two. Arla Foods, the third milk collector in Belgium, lags behind its three competitors.
Ratios different for actual contents
At actual levels and a comparable volume of 1,3 million kilos, LDA is the leader in November, with a real price of €41,70 per 100 liters. While Milcobel and A-ware pay successively €40,20 and €40,80 per 100 kilos. Arla pays out €38,04. For December, the price for actual content and stated volume at both Milcobel and A-ware is €45,20 per 100 liters. A December price will not be announced for LDA until a month later. Arla pays €41,40 per 100 liters for December.
Loyalty premium to €2,00
The increase that Milcobel is presenting for December can be divided into two parts. An actual milk price increase of €3,30 per 100 liters and an increase in the loyalty premium of €1,70 per 100 liters. This brings the total loyalty premium for that month to €2,00 per 100 liters. This premium is only paid to members who are not in cancellation.
Milcobel makes another adjustment to the December settlement. The so-called cooperative refund, a deduction from members on the liters of milk delivered in 2021, will be increased for the second time, from €0,70 to €0,90 per 100 liters. This money is used to supplement the membership capital.