News Milk
FrieslandCampina responds to market with guaranteed price
FrieslandCampina has lowered its Guaranteed Price for October by €2,75 to €53 per 100 kilos. The dairy cooperative is doing this in anticipation of the rapidly declining dairy prices and the expectation that this will translate into lower payout prices. The Organic Guaranteed Price, however, has increased.
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The reduction is less than expected given the negative market expectations. FrieslandCampina was expected to reduce prices by €3 to €4, especially since its prospective merger partner, Milcobel (and also a reference company), had already reduced prices by over €3 in September.
In the market's perspective, the decline can be seen as the dairy cooperative's first serious reaction, after the declines over the past two months remained relatively limited. Nevertheless, the guaranteed price has fallen to its lowest level since September of last year.
The reduction means that the Dutch Milk price calculator van Boerenbusiness The situation has been quite shaken up. FrieslandCampina has been leading the way so far, but with a base milk price of €52,16 per 100 kilos for October, it has fallen back below the level that bottom-of-the-table Arla applied in September.
Organic rises
The organic guaranteed price will increase by €1 next month to €67,75 per 100 kilos. This is explained as a correction for underestimating milk prices in September.