FrieslandCampina milk price rises slightly

FrieslandCampina is letting the Guarantee Price rise further for May. The minimal increase was chosen, based on prices of reference companies in April that were estimated too low. Based on the dairy market, a further increase is not feasible. The Guarantee Price increases by €0.25 to €41.75 per 100 kilos. In the DCA Farm Gate Milk Price Calculator, the milk price comes out at €40.91 per 100 kilos. That means the increase is much smaller than last month, when it was raised by €2.50. In recent weeks, sentiment on the dairy market has clearly turned, with rapidly falling milk fat prices and a cheese market that is also under pressure. The milk powder market is still managing to gain ground, but overall the raw material value of milk is under pressure. FrieslandCampina does not expect the reference companies to increase payout prices further next month, the cooperative dairy company says. If that expectation proves correct, FrieslandCampina will remain highly ranked in Boerenbusiness' Milk Price Comparator. In April, it is currently in first place, although the milk prices of Cono and Hochwald are not yet known. These companies could still overtake FrieslandCampina. Organic Guarantee Price The organic Guarantee Price remains unchanged in May at €61.75 per 100 kilos. FrieslandCampina says there is a downward trend in the organic market and expects lower payout prices from the reference companies. The reason the organic Guarantee Price does not fall is that a positive correction has been applied for payout prices in April that were estimated too low. The organic milk price at an annual supply of 1 million kilos comes out at €57.67 per 100 kilos according to the DCA Farm Gate Milk Price Calculator (Organic). A seasonal discount is included in this price.