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FrieslandCampina sees milk prices rising again
FrieslandCampina will increase the guaranteed price for conventional raw milk in February, largely undoing the reduction in January. The cooperative dairy company cites the fact that the reference companies will increase their farm milk prices in the coming month. This is due to a good demand for dairy products in Europe and a decreasing milk supply.
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Compared to January, the guaranteed price will be increased by €1,25 to €46,00 per 100 kilos. In January, the guaranteed price was reduced by €1,56 compared to December.
The organic guaranteed price is kept the same compared to January and stands at €55,50 per 100 kilos. That does include a small negative correction. The reference companies are expected to leave their organic farm milk prices virtually unchanged as a result of the balance between milk supply and market demand.
According to the Boerenbusiness common milk price comparator FrieslandCampina's basic milk price will increase to €45,16 per 100 kilos. This is the price excluding VAT, after deduction of a 5,5 cent contribution for ZuivelNl and for an annual supply of 1 million kilos. The organic milk price is according to organic milk price comparator van Boerenbusiness works out at €57,42 per 100 kilos.
Like many other large dairy companies, FrieslandCampina is concerned about the development of the milk supply in Europe. In many EU member states, the dairy industry expects a structural decline in milk supply due to increasingly strict rules for dairy farms, making it more difficult to continue doing business. But also because the stricter rules are accompanied by increasing costs and therefore decreasing returns.