FrieslandCampina guarantees organic farm milk price for August
There is currently an oversupply of milk
1 August 2023
2 minute read
By: FrieslandCampina will reduce the guaranteed price for 100 kilograms of organic farm milk in August by 0.50 euros to 55.50 euros (July: 56.00 euros), according to a company press release. The price includes a positive correction over the past period. Given the continuing oversupply of organic farm milk, the prices of the reference companies are expected to fall slightly.
The average guaranteed price for organic farm milk for 2023, including August, is 59.50 euros per 100 kilogrammes of milk.
The FrieslandCampina guaranteed price for organic farm milk is paid out in the milk components: protein, fat and lactose, in a fixed ratio of 6:4:0. The guaranteed price is published per 100 kilogrammes of farm milk, at 3.58% for protein, 4.45% for fat and 4.54% for lactose, exclusive of VAT. The amount applies for an average of 550,000 kilogrammes on annual basis.
This month the protein value is 847.76 euros and the fat value is 565.17 euros per 100 kilogrammes of organic farm milk.
The guaranteed price is the price that the company guarantees to pay member dairy farmers for the farm milk they supply. The guaranteed price reflects the average farm milk price to be paid by a number of dairy companies in northwestern Europe, including supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges.
Based on the monthly guaranteed price, a member dairy farmer receives milk money. The milk money is based on the quantity and protein, fat and lactose content of the milk supplied by the member farmer. The difference between guaranteed price and milk money arises from the offsetting of fixed costs and supplements or charges. In 2023, the fixed costs of organic and biodynamic farms are 0.33 euro per 100 kilogrammes of farm milk supplied.
