Milk price differences are primarily increasing in Belgium

While the milk prices that farmers receive are under significant pressure everywhere, the Dutch processors have so far kept the differences among themselves limited. The October price differences are a maximum of €2.50 per 100 kilos. Not so with the southern neighbors. There, the differences are already twice as high. The question is whether it is worse in Belgium than in the Netherlands, or does it have to do with the company culture? The differences are undeniable. The milk price Calculator from DCA MI show how it is. It is not the case that less good milk prices are necessarily paid in Belgium. There are also optical differences. Because the milk prices in Belgium are determined per liter. With lower fat and protein levels than in the Netherlands, the Belgian prices seem to be lower, while the Dutch prices have been presented in recent years based on increasing standard levels and per kilo. As a result, the prices there appear to be higher right away. Real and cosmetic differences There is a general trend where the average milk gets slightly 'thicker' due to livestock improvement and better feed, but this is a sector-wide development and it does not necessarily mean that the presented milk price should then be higher. However, prices are now heading in the opposite direction, and in Belgium, on average, the hardest. Both Milcobel and Laiterie des Ardennes have lowered their prices in recent weeks by more than €4.50 per 100 liters. In the Netherlands, the maximum has not yet been €4.00 per 100 kilos, and then at only one company, which also stays close to the pack. Belgians and Dutch In Belgium, it has mainly been the own Belgian companies that have sharply reduced prices. The Dutch and Arla concede less. Possibly because their companies have a different valuation model and can better absorb the blows in the market. The downside of this could be that, at some point, when dairy prices rise again, these companies may also be less quick to increase their payment prices. Mergers For FrieslandCampina and Milcobel, the payment difference of about €5.00 (in October) could create an additional bump, at least if it remains the case. With the proposed merger, all members must receive the same milk payment. However, Milcobel cannot yet move forward with this. By the way, large price differences do not only exist in the Netherlands and Belgium. There are also significant differences in payment among the various 'Molkereien' that are active in Germany.