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Milcobel lets milk price jump
Dairy cooperative Milcobel raises the standard milk price for the month of May by a jump. The board of directors has decided on this increase on the basis of the strong results that Milcobel is achieving, it is reported. Milcobel claims to benefit well from both the high prices for dairy on the international markets and from the strong focus on increasing efficiency and reducing costs.
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Due to the latest increase, the standard milk price for May amounts to €51,50 per 100 liters, which is 50 cents more than what A-ware pays in Belgium. With real content and an annual supply of 1,3 million liters per year, the actual milk price is €54,70 per 100 liters (including extra sustainability premium). The milk price of A-ware is €54,03 per 100 liters.
reassurance
With the increase, Milcobel also wants to reassure members that the listeria incident in Moorslede has no negative consequences for the milk price. "Thanks to our insurance policy and the proper management of the listeria incident, this incident has a limited financial impact. Provisions for this have already been included in the result," the company explains.
Double sustainability premium
Milcobel also now guarantees a minimum additional payment (cooperative refund) of €0,35 per 100 liters for the liters of milk delivered in 2022. That's not all; The board of directors has also decided, after advice from the Cooperative Council, to increase the quantity premium (quantum surcharge) by 50% and to abandon the capping for volumes above 2,5 million liters. These extra incentives for larger companies were abolished a few years ago, because Milcobel said it had too much milk at the time.
Back to higher volume premiums
With the new adjustment, the cooperative wants to give space to growth companies and reward them for the efficiency gains achieved when collecting larger volumes. The increase in the quantum surcharges will take effect on August 1, 2022 (after the statutory three-month information period has expired).
The new sustainability premium will come into effect from May, with an increase from €0,50 to a maximum of €1,00 per 100 liters. The average sustainability premium paid out in May 2022 is €0,71, more than double the €0,32 per 100 liters paid out so far. It shows that members are paying more and more attention to sustainable initiatives on their dairy farms, says Milcobel.
Severely overheated
Milcobel says that when adjusting the remuneration policy and increasing the milk price, it mainly looks at itself and relies on its own strengths. Since the low point in milk prices a year and a half ago, Milcobel has continuously increased prices, sometimes slightly more than other times. However, the current increase, the seventeenth in a row, is a record.
Schiettecat does acknowledge that the Belgian dairy market is currently 'seriously overheated', with many companies looking for extra milk. The Dutch FrieslandCampina now also seriously wants to collect more milk in Belgium. At the end of June (28/06), both cooperative chairman Sybren Attema and CEO Hein Schumacher will come to the Ten Dauwe hall in Aalter to win over farmers.