Increase for milk price FrieslandCampina

FrieslandCampina has unexpectedly increased the guaranteed price for August, after a relatively stable period. The increase is linked to the sentiment that has arisen in the market due to drought and summer heat. The guaranteed price rises by €1,25 to €42,50 per 100 kilos. In the Milk Price Calculator of DCA, the base milk price for next month comes out at €41,66 per 100 kilos. Part of the increase is due to milk prices from the reference companies being estimated too low in recent months. Another part is because the dairy cooperative expects milk prices to rise in the coming period. Cheese prices are picking up FrieslandCampina is following the upward movement in cheese prices with the milk price, which has lifted the raw material value of milk to a higher level. In the cheese market, sentiment plays a major role as a result of heatwaves and persistent drought in Northwest Europe. This is slowing production and pushing up prices. In the hot weeks in July, supply to factories was up to 10% lower. In an explanation of the half-year figures, FrieslandCampina's top management said last week that it already expected a more positive market sentiment for the second half of the year. At the time, it was emphasized that the impact of heat and drought on the market is still limited.