The calculated advance milk price in January 2015 averaged € 32.13 per 100 kg standard milk. A decrease of € 0.91 compared to the previous month. Compared to January 2014, this is a decrease of € 8.40 or 20.7%.
Market change
Since the summer of 2014, the average milk prices fell for the seventh consecutive month. However it seems this decline is coming to an end. FrieslandCampina announced both for February (+ € 1.25) and March (+ € 2.50) an increase of their guaranteed milk price. In addition, since the beginning of this year price quotations for butter and skimmed milk powder have risen sharply. However, the expected increase in production following to the abolition of milk quotas on 1 April has a depressing effect on prices, such as shown by the latest official Dutch quotations.
Arla Foods
The Arla milk price remains in February and March equal to January. Arla recently published their annual results for 2014. Never was their performance price – milk price paid cash plus total consolidation per kg milk supplied by owners- as high as in 2014. Whether this means a record milk price depends on the extent to which consolidations are added to the general reserve of Arla or individual capital in owners certificates.
A/B-milk
More and more dairy companies adapt their payment system taking into account the abolition of the milk quota and the expected increase of milk production and greater fluctuations in milk prices. Following the French companies Sodiaal and Danone the British First Milk launches on 1 April also an A / B – system for their members. 80% of the amount of milk an A price is paid on the basis of long-term sales. B- milk is dependent on short-term sales, for example, the spot market.
Following Glanbia also Kerry offers dairy farmers the opportunity to receive a fixed milk price for a part of the quantity of milk supplied.
DOC Cheese
From January 1, DOC Cheese has changed the payment method. The variable cost deduction of € 3.35 is replaced by a deduction cooperative arrangements of € 1.90 per 100 kg. In addition, members capital of € 0.68 is no longer paid at the end of the year paid as a whole, but members receive this amount monthly. For this reason the member capital payment will be included in the calculated monthly milk price. Because of these changes, the calculated milk price of DOC Cheese in January compared to December increased by € 2.13 per 100 kg.
Besides DOC only the calculated milk prices of the French companies Bongrain (+ € 1) and Danone (+ € 0.4) increased. The milk prices of Milcobel, Glanbia and Kerry have not changed, all other milk prices have dropped.
Thanks to ZuivelNL and EDF (see www.milkprices.nl for more information).
