The rapidly falling milk prices of the last few months have led to enormous milk price differences in Belgium. The gap between the highest and the lowest price increased to more than €12 per 100 liters in January.
The differences will decrease again in the coming months, and last year the roles were also reversed. Yet it is remarkable how much milk prices vary.
The top payer for January is Arla Foods, which paid out almost €61,00 per 100 liters with an annual delivery of 1,3 million, while Laiterie des Ardennes for the same month remained just below €48,50 per 100 liters. See also there Boerenbusiness Belgian Milk Price Comparator.
The varying payment differences are not only related to the market situation, but are also related to the profiles of the various dairy companies. Arla is a very broad dairy company with a strong retail presence. The company has also suffered blows there in recent months, but prices in this sector do not fluctuate as much as in the business-to-business (B2B) sector and trade, for which LDA mainly produces.
Price drop in January on average €2,85
FrieslandCampina and A-ware also managed to keep the payment price well above €55 per 100 liters, while Milcobel also had to reduce it considerably further. The same was the case with Limelco, which is not included in the comparator.
Compared to December, the average price paid at the five largest processors fell by €2,85 to €55,95 per 100 liters. The reductions will continue for February, with an estimated minimum of €3,60 per 100 liters. But Arla in particular has so far managed to remarkably resist the pressure to lower the payout price.
Just like in the Netherlands, the milk supply in Belgium is also steadily increasing and the average fat and protein contents are high.