Vreugdenhil Dairy Foods is lowering its base milk price for conventional milk below €50 per 100 kilos in October. It's the first processor in the Netherlands to do so, though this still puts it far from last on average for the year.
With the latest reduction, the milk price of Vreugdenhil Dairy Foods falls by €3,97 per 100 kilos to a basic price of €49,65, according to the Boerenbusiness common milk price comparatorThe pasture milk price will increase to €51,15, and participants in the Tomorrow's Dairy top line can still receive €56,45 per 100 kilos.
Belgian suppliers saw their milk price drop by €3,86 to €48,41 per 100 liters. However, the €50 barrier had already been broken there.
The organic milk price for the Netherlands remains stable throughout this process. Suppliers of this milk stream receive a base price of €67,56 per 100 kilos, the same as the previous three months.
Pressure on dairy market increases
With the current reduction of almost €4 per 100 kilos, Vreugdenhil is taking the biggest step down of all Dutch processors in October. However, pressure to reduce prices is also mounting among other processors. Prices for basic dairy products continue to fall, so also appears this week weather and milk powders have been in a more difficult market for a longer period than cheeses, for example.
Vreugdenhil doesn't have a history of low milk prices. On average, over the past five years (since the beginning of 2021), it even topped the major Dutch processors in both base price and pasture milk price.