FrieslandCampina's last guaranteed price this year has risen sharply, due to prices previously estimated too low by rival colleagues. Moreover, the market expects more to come. The organic guaranteed price also benefits, but not as far.
The guaranteed price for December is set at €46,31 per 100 kilos, which is €4,06 more than the guaranteed price for November. That price was €1,25 higher than the October price. In the previous months the guaranteed price had been steadily reduced.
The increase in the guaranteed price for December is the result of two developments. Firstly, FrieslandCampina has underestimated the payment prices of competitors in the past period. This will be corrected with the December prize. FrieslandCampina also expects that the reference companies will further increase their farm milk prices as a result of the low milk supply and the increased demand for cheese in the European Union. So that also helps.
With the latest increase, the average guaranteed price for the entire year of 2023 amounts to €46,26 per 100 kilos. Last year the average was almost €9,00 higher, at €55,19 per 100 kilos.
According to the Boerenbusiness Milk price comparator FrieslandCampina's basic milk price (i.e. without the effect of surcharges and the like) for December amounts to €45,53 per 100 kilos. The maximum milk price is €51,83. This last prize is only feasible for participants in the PlanetProof program.
The organic guaranteed price will be increased by €2,27 to €56,02 per 100 kilos. This increase includes a positive rounding. It is expected that as a result of higher market demand, reference companies will further increase their organic farm milk prices.