Dairy company Royal A-ware is lowering the milk price for January, but doing so in a way that some of the price pain for conventional milk is mitigated with the help of extra premiums. The organic milk price is also falling, but less than the conventional one.
In addition, all milk prices from almost all processors in the Netherlands will work with higher standard contents for milk from the beginning of this year: 4,45% fat and 3,58% protein instead of 4,42% fat and 3,57% protein . This makes the milk price reduction appear to be slightly less than it actually is.
Minus €2,16 for basic, with new contents
As a result of all adjustments, A-ware's basic milk price amounts to €60,36 per 100 kilos. That is €2,16 less than the basic milk price in December (with the old percentages at the time).
Extra for Farm Milk
Due to an additional increase in the farm milk premium by 15 cents to €1,25 per 100 kilos, the price reduction will be slightly less severe. Farm milk comes from non-grazing farmers, who do receive a supplement for Vlog.
The basic milk price has been supplemented with two new premiums: a premium quality premium of €0,25 and a Footprint premium of €0,50 per 100 kilos.
The Footprint premium of €0,50 per 100 kilos does not apply to participants in Albert Heijn's Better for Milk Flow.
Organic milk price
The organic milk price for January will be reduced by more than €1,50 per 100 kilos to €68,89 per 100 kilos ex VAT. This is also the price for the new standard contents and for an annual supply of 1 million kilos. As with conventional milk, the pain of the milk price drop is also softened here by the introduction of additional quality and footprint premiums.
Other processors have also introduced additional premiums starting this year, especially for climate and animal welfare. At FrieslandCampina this is done via the Focus Planet system. New climate allowances have also been introduced at Arla and Vreugdenhil.