Milcobel with milk price well below 40 euros

In total, the actual price drops by €6,16 to a base level of €39,36 per 100 liters, based on an annual supply of 1,3 million liters, excluding VAT. Including the sustainability surcharge, an additional €1 can be received.

According to Milcobel, members with an extra-large volume of 2,7 million liters per year or more can receive maximum subsidies of up to €41,25. This is a small group, however. The milk price at the legal Belgian content is set at €37 per 100 liters.

According to Milcobel's board, the sharp reduction is attributable to current low prices in the dairy market and the consequences this has for the company. "Like other dairy processors, Milcobel is no exception to this economic reality."

"Falling prices are causing further delays on the demand side, at a time when milk supply is showing a strong upward trend."

Meanwhile, the board is pinning its hopes on "the first positive signs that dairy prices may be bottoming out. This is a message that dairy farmers are also hoping for, given the return on their own dairy farms."

Milk price comparator Belgium
Due to the latest reduction, Milcobel is currently the lowest payer in Belgium, according to the Boerenbusiness Belgian Milk Price Comparator. The cooperative also pays €4,46 per 100 liters less than intended merger partner FrieslandCampina and €6,23 less than current leader Arla. 

Early next month, members of FrieslandCampina and Milcobel must cast a final vote on the proposed merger. The merger could then take effect in the new year, with members of the two former cooperatives receiving the same milk revenue.