FrieslandCampina drops below 40 euro with milk price

The milk price of FrieslandCampina is going down significantly in January and falls below the psychological barrier of €40 per 100 kilos. It was in October 2021 the last time there was a 'three' for the Guarantee Price. In January, the Guarantee Price drops by €4 to €39.50 per 100 kilos. Since the decline began in August, €17.25 per 100 kilos has evaporated. At the beginning of 2023, the decline was even sharper, but such drastic reductions in a short period of time are rare. In the Milk price calculator, the basic milk price for January comes out to €38.54 per 100 kilos. Including the maximum achievable premiums linked to the PlanetProof milk stream, the payout price can rise to €43.54 per 100 kilos. These prices are calculated based on an annual supply of 1 million kilos and the standard fat and protein levels in our country. Reference companies It can be noted that the milk price has not yet found a bottom, despite the relatively mild decline in December. However, it is true that January is often a weak month for the milk price. FrieslandCampina expresses in an explanation the expectation that the reference companies will further lower the milk price in the new year. Milcobel, by the way, is not part of this since the merger will be implemented in the new year. There will be no other reference company in place of the Belgian merger partner of FrieslandCampina, as cooperative chairman Sybren Attema stated in December. Organic milk price also lower The organic Guarantee Price, after a period of price increases, shows a decrease in January of €0.71 to €68 per 100 kilos. Additionally, members see the standard seasonal surcharge decrease by €1 to €2 per 100 kilos. In the organic Milk price calculator, the milk price of FrieslandCampina for the new year is €69.72 per 100 kilos. Nevertheless, the difference between conventional and organic milk prices is significant at approximately €30 per 100 kilos.