Vreugdenhil opts for the middle ground in the milk price drop

Following many other processors, Vreugdenhil Dairy Foods has also lowered the milk price for February. The powder producer remains in the middle group of the DCA Farmgate Milkprice Calculator. The basic milk price decreases this month by €1.43 to €37.18 per 100 kilos. Including the premium associated with the sustainability program Tomorrow's Dairy, the payment price rises to €43.98 per 100 kilos. The payment prices are calculated based on an annual delivery of 1 million kilos and the standard contents in the Netherlands of 4.49% fat and 3.57% protein. The Belgian milk price from Vreugdenhil decreases this month by €1.38 to €36.21 per 100 kilos. 'Golden mean'In January, the difference in the DCA Farmgate Milkprice Calculator between the highest and lowest price was relatively limited, with a difference of about €1.50 per 100 kilos. In February, the differences are increasing again. Processors such as FrieslandCampina and Lactalis Leerdammer lowered moderately, with a decrease of around €0.50. Arla went back more significantly with a reduction of over €2. A-ware and also Vreugdenhil are opting for the 'golden mean' with a reduction of around €1.50. Market remains volatileThe valuation of milk based on skimmed milk powder/cream and whole milk powder is slightly above €35 per 100 kilos at the beginning of February, according to valorisation data from DCA Market Intelligence. Cheese is slightly more profitable. This means that a bottom for milk prices is approaching. Meanwhile, the dairy market remains volatile. In recent weeks, the prices of particularly milk powder and butter increased again, but this week the sentiment is quite negative again, it is reported. The persistently high milk supply in Northwestern Europe means the market remains quite unstable.