FrieslandCampina continues to increase milk prices – News Milk

FrieslandCampina

News Milk

Today 12:22 pm – Wouter Baan

The dairy market has not been all that positive in recent months. While the competition is often already exhausted, FrieslandCampina continues to increase its own guaranteed price. Also with the new price for May that was announced today (Monday).

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The cooperative dairy group increases the guaranteed price for May by €0.50 to €47.25 per 100 kilos. In recent months, FrieslandCampina has continued to implement limited increases. The company justified this by stating that these were corrections to the milk prices of the reference companies that were estimated too low. This reason is also put forward again in the latest increase.

FrieslandCampina was already in the lead in the Boerenbusiness Milk Price Comparator and that position will be further strengthened. The dairy cooperative indicates that it expects stable milk prices at the reference companies in the coming months. This is a plausible expectation, especially since many Dutch dairy producers stopped increasing the milk price in April.

Pleasure and burden
In any case, the announced increase is welcome news for FrieslandCampina’s member dairy farmers. Especially in view of the expensive spring and summer months with sowing and silage work around the corner and the already high cost price in dairy farming due to high manure prices. However, it can also be said that the relatively high guaranteed price is likely to be a source of pressure within the dairy group, as was the case in 2023. In any case, the guaranteed price is quite well above the raw material value of milk calculated by DCA Market Intelligence, based on the valorization of Gouda cheese or the combination of skimmed milk powder and butter.