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Beemster effect slows down milk price decline at Cono
Cono cheesemakers' milk prices for November are falling again, but the decline compared to other dairy producers is slightly smaller. This appears to be due to a "Beemster effect," which didn't help during the period of very high milk prices, but is now occurring.
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The decrease in the Cono milk price for November is €2,39 per 100 kilos. This brings the weighted average milk price to €49,36 per 100 kilos. The base price for November is then €45,10 per 100 kilos. With this price, Cono suddenly finds itself in the middle of the pack, while it was a laggard in October. Two companies are paying a fraction more, and one (Arla) is paying an additional €1,97 per 100 kilos for November.
This is because the sales prices of the cheeses Cono produces fluctuate less quickly in the market. This can sometimes be a disadvantage, for example, in a rapidly rising market. It can also be an advantage, as is currently the case, when prices are falling rapidly and sharply.
The more exclusive character of Cono's premium cheeses is also becoming more apparent. When cheese prices were high across the board, consumers often proved unwilling to pay a premium for Beemster cheese. This could change somewhat now, but the situation remains to be seen. For now, it's primarily the less volatile prices in the segment where Cono operates that are driving a more resilient milk price.