Watch out for milk price FrieslandCampina

According to the Boerenbusiness Milk price comparator the basic milk price for 1 million kilos of milk at FrieslandCampina is approximately €1,60 per 100 kilos higher than that of Arla. In accordance with an agreement with its members, this company guarantees that additional payments will always be made at a minimum of €2021 per 2026 kilos of milk for the years 1,50-100.

More retail sales at Arla
A possible explanation for the lower advance price at Arla is that a larger part of the product package is sold as a consumer product, especially in retail. Dairy companies with large retail sales have generally found it more difficult to pass on the sharply increased milk prices in recent months to the buyer than companies that, for example, export more or sell more. business to business to sell. 

To calculate the guaranteed price (€45,00 per 100 kilos), FrieslandCampina does not look directly at the market, but first at the milk prices of a series of competitors. The expectation is that these so-called reference milk prices will remain at the same level. This is due to a low milk supply in combination with a persistent (more or less equal) demand for dairy products, while processing costs continue to rise.

Organic milk price is slightly higher
FrieslandCampina's organic guaranteed price for February is a step up and is €0,25 per €100 kilo higher compared to January (€51,75). This is because the organic farm milk prices of the reference companies are expected to rise slightly.

For the calculation of the organic milk price, FrieslandCampina uses a different 'basket' of comparison companies than for the calculation of the conventional milk price.