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FrieslandCampina takes a step back with milk price
FrieslandCampina will keep the milk price for July the same as for June, the company has announced. The decision applies to both the regular and organic milk price.
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The starting point for this decision is the expectation that the reference companies will keep their payment prices to dairy farmers the same, reports FrieslandCampina. The dairy cooperative is currently the first in the Netherlands and in North-West Europe which has announced a milk price for July, so it is not yet clear what other dairy companies will do.
The fact is that dairy companies are currently paying a relatively high milk price compared to the 'commodity market', or the market for basic dairy products, such as butter, cheese and milk powder. From that perspective, a pause would not come as a surprise, but FrieslandCampina does not refer to this directly. The company is anticipating the expected behaviour of other processors.