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Lactalis joins the peloton of milk price reducers
Cheesemaker Lactalis Leerdammer is joining the growing ranks of milk price reducers. Lactalis is taking a relatively cautious approach, but is still shaving a few cents per 100 kilos off the price for August.
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The company has announced this. The new base price will be according to the comparison of Boerenbusiness This amounts to €55,11 per 100 kilos (was €55,54) for an annual supply of 1 million kilos. The maximum milk price for this volume is €58,31 per 100 kilos. For volumes exceeding 1,2 million kilos per year, Lactalis pays an additional 30 cents per 100 kilos.
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The reduction of 43 cents per 100 kilos is moderate compared to the reductions applied by FrieslandCampina (-50 cents) and A-ware (-75 cents), but on balance the milk price of Lactalis is 30 cents per 100 kilos below the price of the companies mentioned.
Nevertheless, the producer of Leerdammer cheeses still pays a significantly higher base price than, for example, Arla and, in the case of some farmers, their former customer Cono. Although Cono has yet to announce a milk price for July.
The reduction in payout prices for August is not surprising. The dairy market has come under increasing pressure in recent weeks, and most factories are paying their members and suppliers more than the raw material value of most basic dairy products. A further drop in dairy market prices seems expected based on various reports.