Milk price FrieslandCamina at lowest point in 5 years

FrieslandCampina has further reduced the last milk price of the year, by €2.50 per 100 kilos. Although it is less than in November, it is still a reduction. FrieslandCampina expects that the reference companies - which it mirrors for the milk price - will also lower their standard milk prices. This results in the lowest price in five years. The reason why the reference companies are expected to lower their milk prices is the same reason that FrieslandCampina ultimately has to lower: the basic dairy prices are still suffering from a declining trend. However, this is not the only factor. The lower price also includes a negative correction, as FrieslandCampina has overestimated the prices for regular farm milk compared to competitors recently. The guaranteed price for standard milk for December is €43.50 per 100 kilos after the reduction. The basic price of FrieslandCampina for standard milk in the Netherlands amounts to €42.66 per 100 kilos according to the Milk Price Calculator of DCA MI. The maximum milk price, including all bonuses, amounts to €47.66 per 100 kilos. This is the price for an annual delivery of 1 million kilos, excluding VAT and after deducting the retention for ZuivelNL. This price has therefore reached its lowest level in five years. BelgiumIn Belgium, the same milk price for suppliers comes to €41.40 per 100 liters, but that is for differing Belgian contents and for an annual delivery of 1.3 million liters. Here, the milk price decreases by €2.42 per 100 liters. Small increase for organicThe organic guaranteed price rises by 21 cents to €68.71 per 100 kilos, including a winter bonus of €3. For organic milk, FrieslandCampina expects that the reference companies will keep their prices approximately aligned with the developments in the organic dairy market, allowing for a small increase.