Milk price in January makes a limited step up

In December, the end-of-year bonuses fell and the final increases were paid to close the year (apart from any back payments). As a result, the milk price rose by an average of €2,44 per 100 kilos to €44,47, according to the Boerenbusiness Milk price comparator. This is the meadow milk price. This is closest to the actual milk price paid, because the vast majority of dairy farmers in the Netherlands practice pasture grazing.

In January, milk prices were further increased, but there were no more one-off bonuses or other extra payments and the average milk price increased by €0,93 per 100 kilos to €45,40 per 100 kilos. The average increase appears to be even lower for February, because many companies will then pause in terms of milk prices.

Meadow milk price (over the last 12 months)

The effect of higher dairy prices takes time
That is not because prices on the dairy market have stabilized. Prices continue to rise, but with smaller average traded volumes. The impact of high market prices in all segments of the market sometimes takes time. Some companies are also extra careful at the start of the new year.

The average increase of 93 cents per 100 kilos can be very different for each processor. At A-ware, the suppliers had received a substantial end-of-year bonus in December. It is therefore not surprising that slightly less net payments were made in January. DOC Kaas, on the other hand, was able to continue to increase significantly thanks to a good foil cheese market.

On average over the twelve-month period up to and including January 2022, Cono and Vreugdenhil successively paid the highest (pasture) milk prices. They successively arrived at €40,77 and €40,21 per 100 kilos. Arla lags slightly behind on average and works out at €37,77 per 100 kilos.