The difference in price between conventional and organic milk has never been as small in recent years as it is today. At FrieslandCampina, according to the latest state of affairs, the difference in guaranteed price is only €1,50 per 100 kilos.
The price difference is often slightly larger at the other processors and collectors of organic milk, the largest at RFC rival Arla. According to the statement, there is about €7,50 per 100 kilos in between.
If you look further, you will see even more differences. But it is undeniable that organic dairy farming does not share equally in the price increases received by its conventional colleagues. In the meantime, the costs have risen for everyone.
On the sales side, organic dairy farming can now benefit from the changed market. Organic dairy under private label has become almost as expensive as conventional dairy. "Consumers no longer have to leave organic dairy for the price," concludes René Cruijsen, chairman of the marketing cooperative Eko-Holland.
Planet Proof pays better than organic
In the meantime, what matters is which prices are compared with each other. At FrieslandCampina, the organic milk price for an annual supply of 1 million kilos per year is €64,68 per 100 kilos, see the Boerenbusiness Organic milk price comparator. That is more than €4,00 more than the usual milk price without supplements. This is €60,48 per 100 kilos. Anyone who takes all the bonuses and supplies milk according to the 'on the way to Planet Proof' scheme will receive just 50 cents per 100 kilos more with this common type of milk than an organic dairy farmer.
The situation with other processors is not so special. Nevertheless, this example shows the situation in which the organic sector has found itself due to the limited availability on the dairy market
For processors, meanwhile, it turns out the other way around. Milk without additional supplements can be purchased most favorably and yields a higher sales margin on the world market. After all, milk powder or condensation is assessed on other aspects than on the question of whether or not the product comes from pasture or Planet Proof milk.