FrieslandCampina has set the guaranteed price for July at a special milestone of €60 per 100 kilos. This is €3,50 higher than the guaranteed price for the current month of June. How does this price increase translate into the Boerenbusiness Milk price comparator?
FrieslandCampina motivates the rising guaranteed price by the developments in the dairy market, in particular the expectation of the milk prices of the reference companies on which the cooperative dairy group bases the guaranteed price. FrieslandCampina assumes that these milk prices will rise because milk production across Europe falls short of expectations. A positive correction has also been included in the guaranteed price, because the reference milk prices were higher than expected in the past period.
The average FrieslandCampina guaranteed price for 2022 up to and including July is €50,57 per 100 kilos, the dairy company says in a statement. The guaranteed price applies to 100 kg of milk with standard contents of 3,57% protein, 4,42% fat and 4,53% lactose. The amounts apply to an average supply of 850.000 kg of milk on an annual basis.
Also in the Boerenbusiness Dutch Milk price calculator FrieslandCampina is taking a firm step forward. The basic milk price, ie without all the bonuses and premiums, remains just under €60 and amounts to €59,23 per 100 kilos, with an average annual supply of 1 million kilos of milk. With this FrieslandCampina has made significant strides in the past three months, because the basic milk price for April still amounted to €47,23 per 100 kilos.
Can competitors keep up with pace?
The meadow milk price, the milk price including the meadow supplement, is well above the level of €60, at €60,73 per 100 kilos of milk. In the coming weeks, the question is whether competitors such as A-ware and Lactalis Leerdammer can keep up with FrieslandCampina's price increases. Both competitors recorded a slightly higher meadow milk price than FrieslandCampina in the last two months (May and June). The highest payer in recent months has been Vreugdenhil, but this company is always two months behind FrieslandCampina in publishing the milk price.
At the maximum milk price, the milk price in which all possible supplements and premiums have been incorporated, the level of €63,93 in the milk price beckons even at €100 per 65 kilos.