Analysis milk
Milk price differences are increasing, especially in Belgium
While milk prices received by farmers are under significant pressure everywhere, Dutch processors have so far kept the differences between them limited. The October price difference is a maximum of €2,50 per 100 kilos. This is not the case in our southern neighbors, where the differences are already twice as high.
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The question is whether things are worse in Belgium than in the Netherlands, or does it have to do with corporate culture? The differences are undeniable. milk price comparators from Boerenbusiness show how it goes.
It's not that milk prices are necessarily lower in Belgium. There are also visual differences. Milk prices in Belgium are set per liter. With lower fat and protein contents than in the Netherlands, Belgian prices appear lower, while in recent years Dutch prices have been presented with increasing standard contents and per kilo. This immediately makes prices there appear higher.
Real and cosmetic differences
There is a general trend where milk is becoming slightly 'thicker' on average, due to livestock improvements and better feed, but this is a sector-wide development and does not necessarily mean that the presented milk price should be higher.
Now, however, prices are moving in the opposite direction, and on average, the fastest in Belgium. Both Milcobel and Laiterie des Ardennes have lowered their prices by more than €4,50 per 100 liters in recent weeks. In the Netherlands, the maximum has not even reached €4,00 per 100 kilos, and only at one company, which is also still close to the pack.
Belgians and Dutch
In Belgium, it has been primarily Belgian companies that have seen prices fall sharply. The Dutch and Arla companies are less lenient, possibly because their companies have a different valuation model and are better able to absorb market shocks. The downside, however, may be that, if dairy prices rise again, these companies will also be less inclined to raise their payout prices.
merger
For FrieslandCampina and Milcobel, the payout difference of approximately €5,00 (in October) could create an additional hurdle, if it remains the same. With the proposed merger, all members must receive the same milk payment. Milcobel, however, cannot anticipate this yet.
Significant price differences aren't limited to the Netherlands and Belgium. In Germany, too, there's a significant difference in pay between the various "Molkereien" operating there.