News milk
Market leader in goat milk abandons guaranteed price
Holland Geitenmelk (HGM), the market leader for goat milk in the Netherlands and part of Ausnutria, is changing its milk price policy. The company no longer promises to always pay 0,4 cents per kilo more than the highest payer and has asked suppliers to agree to new contract terms, including an A and a B price.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
HGM does not want to comment on the contracts in terms of content, but HGM confirms that the milk price system has been changed. "With this change, Ausnutria and HGM, together with their suppliers, want to work on a healthy balance between market and milk price. Restoring that balance is necessary to anticipate market developments and thus better align supply and demand of goat milk for the future," is the response.
HGM suppliers had until last week to agree to the new contract terms. Those who did not agree will have to look for a new buyer. The expectation is that the new terms will lead to shifting relationships in the goat milk sector. Various companies are active in the Dutch goat dairy sector, but the industry is dominated by 4 players. The largest is Ausnutria (and Yili), with HGM and Amalthea among others. They are followed by Emmi with Bettinehoeve, Eurial subsidiary Capra in Halen, Belgium, and CZ Rouveen with the Dutch Goat Farmers' Cooperative (NGC).
Valorization has changed
The background to all the changes is the shifting balance in terms of the valorisation of goat's milk. For years, infant nutrition based on goat's milk was responsible for the best returns and the highest milk price. As a specialist in this infant nutrition, Ausnutria was the driving force behind the industry. Infant nutrition is no longer the undisputed best-yielding processing option. Cheese is once again becoming a real alternative, but at an average lower price level.