FrieslandCampina is lowering both its conventional and organic milk prices for February. While the conventional milk price will be reduced by a relatively modest amount, 50 cents per 100 kilos, the organic milk price will not only be reduced, but also by a much larger amount than the conventional milk price.
The reductions in both cases are related to the high milk supply, the dairy company reports. The guaranteed price for conventional milk will increase from €39,50 to €39,00 per 100 kilos, while the guaranteed price for organic milk will increase from €68,00 to €65,00 per 100 kilos.
Because the milk supply still exceeds market demand for dairy products, FrieslandCampina expects reference companies to further reduce their compensation for conventional farm milk. The same applies to organic milk.
With an annual delivery of 1 million kilos excluding VAT, FrieslandCampina's basic milk price for February amounts to €38,16 per 100 kilos, while the maximum milk price including all surcharges according to the Boerenbusiness Milk price comparator comes to €43,16.
The organic milk price for February is based on €66,92, but farmers can also earn a few euros per 100 kilos on top of that through premiums.