FrieslandCampina again does not change the milk price

FrieslandCampina notes in the current announcement that the dairy market is currently characterized by declining supply growth and moderate demand. Due to the uncertainty about the future direction of the market, it is expected that the reference companies will keep their farm milk prices stable in the near future, it is reported.

Although the guaranteed price for July remains unchanged at €43,25 per 100 kilos, there is a plus included. The price includes a correction due to underestimated raw milk prices from reference companies in the previous period. Without that correction the price would probably have been lower.

The organic guaranteed price does not benefit from such a correction, but also remains the same: at €56,00 per 100 kilos. This happens despite the fact that there is an oversupply of organic farm milk. The expectation is that the reference companies will keep their prices virtually the same.