Milk price DOC Cheese down more than seven and a half euros

DOC Kaas reduces the basic milk price by €7,55 to €54,39 per 100 kilos, based on the standard contents and an annual supply of 1 million kilos. Including bonuses and premiums, the payout price can amount to a maximum of €57,14. DOC Kaas regrets that the reduction does not correspond to the expectations expressed earlier, when the market was still more favorable. 

With the significant downgrade, DOC Kaas loses its leading position in the milk price comparator which they still had in their hands in January. DOC Kaas was among the winners in the comparator during the recent milk price rally, but is now having a difficult time. DOC Kaas and parent company DMK process a relatively large amount of milk into commodity cheese and it is precisely those markets that are under heavy pressure.

Demand drop greater than expected
A drop in demand and a significant increase in milk production are disrupting the market. Since last late summer, 45% of the market value has evaporated. This obviously puts great pressure on payout prices. Despite a record reduction for February, the milk price of DOC Cheese remains under pressure. 

DOC Kaas explains in an explanation that the drop in demand for white dairy and cheese is much greater than expected. The contracted volumes that DOC Kaas previously concluded at - according to its own claims - good prices are far from being called. Inventories are increasing and this has a negative effect on DMK's results.