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Leerdammer significantly limits fall in milk price
Cheese maker Lactalis Leerdammer is still lowering the milk price for the month of May, but is slowing down considerably. In terms of lowering, it occupies a middle position between A-ware and FrieslanCampina. The basic milk price is below that of both.
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In total, Leerdammer deducts €1,43 from the milk price for the current month, bringing the basic milk price to €42,31 per 100 kilos (excluding VAT, with an annual supply of 1 million kilos), according to the Boerenbusiness Milk price comparator. The meadow milk price is €44,31, the maximum milk price is €45,56 per 100 kilos.
With the current milk price, Leerdammer is back at the price level of December 2021. The graph above shows that the pace of price declines has now significantly decreased.
Lactalis achieves 28% more turnover
How Lactalis Leerdammer is doing economically is unclear to the outside world. Parent company Lactalis is doing relatively well.
Last year it achieved a turnover of €28,3 billion and a profit of €384 million. The first number was more than 28% higher than the year before, profit was 14% lower.
Less profit, smaller margin
Due to the higher turnover, Lactalis overtook competitor Danone and became the second largest food company in the world. The strong increase in turnover does not say everything about the company's performance. The 28,4% increase in turnover lagged behind the milk price increase. This amounted to 35%, CEO Emmanuel Besnier said. And the turnover figures for 2022 also include the contribution of the new acquisitions of Kraft dairy and Leerdammer.
The profit of €384 million also sounds more impressive than it is. In 2021, a profit of €445 million will be made on a turnover of €22 billion. Moreover, that €384 million represents a margin of only 1,36%.