Lactalis joins group of milk price reducers

Cheese maker Lactalis Leerdammer in the Netherlands joins the growing group of milk price reducers. Lactalis is taking a somewhat cautious approach, but still reduces the price by a few cents per 100 kilos for August. This has been announced by the company. According to the DCA farmgate milkprice calculator, the new base price is €55.11 per 100 kilos (was €55.54) for an annual delivery of 1 million kilos. The maximum milk price at this volume is €58.31 per 100 kilos. For volumes exceeding 1.2 million kilos per year, Lactalis pays an additional 30 cents per 100 kilos. The reduction of 43 cents per 100 kilos contrasts moderately with the reductions applied by FrieslandCampina (-50 cents) and A-ware (-75 cents), but overall, Lactalis's milk price is 30 cents per 100 kilos lower than the prices of the mentioned companies. However, the producer of Leerdammer cheeses still pays a clearly higher base price compared to Arla, for example, and, in the case of some farmers, their former buyer Cono. The latter still has to announce a milk price for July. The reduction of the payout prices for August is not surprising. The dairy market has come under increasing pressure in recent weeks, and most factories are paying their members and suppliers more than the value of most basic dairy products. Further price decreases in the dairy market seem to be expected based on various reports.