A-ware boosts milk price with premium

The dairy company is increasing the milk price this month by €4,25, of which €1,50 is a one-off December premium. This brings the basic milk price for December to €45,89 per 100 kilos. Including bonuses and premiums, this increases to €51,65. 

The December bonus has more or less become a tradition at A-ware to allow suppliers to share in the profits in the last month of the year. Our own variation on a supplementary payment that cooperatives are often used to paying out. The increase keeps A-ware FrieslandCampina ahead of the 2023 annual review Dutch Milk price calculator van Boerenbusiness. The Heerenveen company also remains ahead of the guaranteed price with the WP, the weighted average price of A-ware (€48,75). Until now it has been a neck-and-neck race, which underlines the interests of achieving the highest milk price. 

Footnote
The comment that must be made is that the A-ware increase is partly based on the December bonus. This expires again in January. The increase in itself is significant FrieslandCampina of €4,06 so larger. A-ware is therefore playing it safe, given that market expectations for the new year are still uncertain. Cheese sales are now booming, but this could easily be different in the new year.

At the beginning of December, prices for Gouda foil cheese, for example, for the new year are slightly lower than deliveries in the fourth quarter. But despite the uncertainty, there is no reason to think that the dairy market will implode in 2024. The dairy market enjoys a lot of support due to the sometimes sharp decline in milk production in price-setting European countries such as the Netherlands, Germany, France and Ireland. 

DOC Cheese and Arla
Also arrived earlier this week Arla and DOC Cheese the milk prices for December. Both cooperatives are taking it slower than A-ware and FrieslandCampina and increased by more than €1 and €2 per 100 kilos respectively.