Reputation of Cono takes a hit with the lowest milk price

In June, Cono will increase the milk price by €2,42 to €53,50 per 100 kilos. This basic price is calculated on the basis of the standard fat and protein contents and an annual supply of 1 million kilos. Including maximum bonuses to be achieved in the internal sustainability program 'Caring Dairy' the payout price can rise to a maximum of €58 per 100 kilos.

Lowest price is unique
In itself, the level of the Cono milk price is not bad, but compared to other processors, Cono lags behind. In the milk price comparator van Boerenbusiness Cono is in last place on June. Historically, this is unique, because the cooperative is known as one of the better payers. If not the best. When we compare inclusive bonuses, only DOC Cheese is below Cono.

Since the beginning of this year, Cono has been surpassed by other processors. Initially, the cooperative fell back to the middle bracket, but now they are at the bottom. Although Vreugdenhil has yet to announce the June milk price, this will not change the stand. This is because Vreugdenhil already paid more in May and has been in the lead for some time. When we take the average over the past 12 months, Cono is still in a respectable second place. As indicated, the lesser performances play out since December last year.

The coming months should show whether the Cono milk price can recover. The cause of the dip in shape is due to the high prices of commodity dairy, which has reduced, if not eliminated, the price difference with branded dairy. Cono is focusing on branded cheese from the Beemster. This usually results in a better value, but right now the cards in the market are shuffled differently. 

Rapid price increase for bulk cheese 
"The prices of branded cheese have risen less rapidly than bulk cheese. That is the situation and we have to deal with it. Of course this is annoying, but we are not going to let ourselves be fooled. Branded cheese often results in an additional cost, but at the moment not. The prices of our cheeses are also rising, but less quickly," Betten responds. In addition, according to Betten, Cono saves money for a supplementary payment. "Our members expect at least 1 cent in arrears. And don't forget that we pay an average of €4,25 in premium, other processors are nowhere near that." 

"We could also have chosen to keep milk from the cheese trough and switch to milk powder. As is known, we have the capacity to process two-thirds of our supply into milk powder. However, we consciously do not do this. Cono continues to focus on cheese. , we are therefore opting for the longer term. If the market is tight again, that would mean that we would have to buy back market share in cheese. That in turn costs money. By continuing to focus on our branded cheese, we are consciously opting for the long term. has always been our fixed value and we stick to that," says Betten.