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Arla and DOC Kaas also lower milk prices significantly
Both Arla and DOC Kaas have significantly reduced the milk price for March, just as FrieslandCampina did earlier this week. Both cooperatives say they are confronted with a sharp drop in demand due to the high inflation.
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DOC Cheese in particular is making a significant reduction. The basic payment price decreases by €7,55 to €46,84 per 100 kilos. Including bonuses, the milk price can rise to a maximum of €49,49 per 100 kilos. DOC Kaas is therefore the first processor where the milk price falls below the €50 limit.
The reason for the sharp decline is the persistent drop in demand for white dairy and cheese. For example, retailers do not purchase the contracted volumes. DOC Kaas also mentions the ample milk supply in Northwest Europe. DOC Kaas is more optimistic for the coming months now that dairy prices are stabilizing. The milk price may follow suit.
Arla
Dairy cooperative Arla is in less haste to reduce the milk price. For March, the basic milk price drops by €4,24 to €53,88 per 100 kilos. Including bonuses, the payout price can amount to around €57. This makes Arla the best payer for March compared to DOC Kaas and FrieslandCampina, according to the Boerenbusiness Dutch Milk price calculator.
Arla also notices the drop in demand on the store shelves, as well as the ample milk supply. In addition, the uncertain economic outlook creates uncertainty on the dairy market.