Vreugdenhil Dairy Food

News milk prices

Vreugdenhil spears up in milk price comparator

12 April 2022 - Wouter Baan

Even without a winter bonus, Vreugdenhil is able to take the lead in the milk price comparator of Boerenbusiness† The milk powder producer is implementing a considerable increase in March.

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De bare milk price van Vreugdenhil increases by €3,25 to €48,09 per 100 kilos. This is calculated on the basis of the standard fat and protein contents and an annual supply of 1 million kilos. In the Boerenbusiness Milk price comparator Vreugdenhil is thus far ahead. The difference with DOC Kaas, the number two in the ranking, is more than €1,20. 

Vreugdenhil also pays out a relatively high basic milk price over a longer period. Together with Cono, the average between April 2021 and March 2022 is more than €40 per 100 kilos, while the rest is below that. 

Maximum just under €50
Including the maximum achievable premiums and bonuses, the milk price of Vreugdenhil rises to €49,59 per 100 kilos. In the maximum comparator, the producer currently stands between FrieslandCampina and DOC Kaas. At Vreugdenhil, the maximum bonus is €1,50, which is limited compared to other dairy processors. This is because the powder producer does not use special milk flows.

Looking at the market, the milk price of Vreugdenhil benefits from the record high milk powder prices. The DCA quotation for skimmed milk powder (food) is above the €4.200 per tonne level and the market feels solid. Whole milk powder is well above the €5.000 limit per tonne. This while prices have never managed to rise above the €4.000 level in the past.

Commodity value to €70
Based on the weekly quotations of skimmed milk powder and butter, the raw material value of milk is around the level of €70 per 100 kilos. The payout prices are well below this level. On the one hand, this is because the contract prices are often concluded at (sometimes considerably) lower levels. The costs of processors for energy and transport have also risen sharply, so that their margins are less generous than sometimes appears at first sight.

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