Milcobel sets milk price well below 40 euros

Milcobel lowers the milk price for November by the largest step so far this year. The price at statutory Belgian qualities goes well below €40 per 100 liters. The maximum price at actual qualities remains slightly above. In total, the actual price decreases by €6.16 to a base level of €39.36 per 100 liters, with an annual delivery of 1.3 million liters, ex VAT. Including sustainability surcharge, an additional €1 can still be received. Members with an extra large volume of 2.7 million liters per year or more can receive up to €41.25 according to Milcobel with maximum surcharges. This concerns a small group. The milk price at the statutory Belgian qualities is set at €37 per 100 liters. According to the board of Milcobel the significant reduction is attributed to current low price levels in the dairy market and the consequences this has for the company. Like the other dairy processors, Milcobel cannot escape this economic reality. Falling prices lead to further delays on the demand side, at a time when milk supply is showing a strong upward trend. The board meanwhile expresses hope for first positive signals that the bottom of the dairy prices may be in sight. A message that dairy farmers also hope for, in terms of the returns on their own dairy farm. Milk price comparator Belgium Due to the latest reduction, Milcobel is currently the lowest payer in Belgium, as shown by the DCA Milk Price Calculator. The cooperative also pays €4.46 per 100 liters less than proposed merger partner FrieslandCampina and €6.23 less than current leader Arla. At the beginning of next month, the members of FrieslandCampina and Milcobel must cast a definitive vote on the proposed merger between the two. Subsequently, the merger can take effect from the new year, and the members of the two old cooperatives will receive the same milk money.