FrieslandCampina Elevates Guaranteed Price for Organic Farm Milk in March 2024 to 58.00 Euros
Source: The DairyNews
In a positive development for organic dairy farmers, FrieslandCampina has announced a noteworthy increase of 2.50 euros in the guaranteed price for organic farm milk in March, reaching 58.00 euros per 100 kilograms compared to the previous month.
This boost encompasses a positive correction resulting from an underestimation of reference prices in the preceding period, and reference companies are anticipated to follow suit by raising their organic farm milk prices.
The average guaranteed price for organic farm milk for the initial months of 2024, up to and including March, stands at 56.33 euros per 100 kilograms.
FrieslandCampina calculates the guaranteed price based on milk components—protein and fat—in a fixed ratio of 6:4. The published price is per 100 kilograms of farm milk, considering 3.58% protein and 4.45% fat, exclusive of VAT. This amount is applicable to an annual average of 550,000 kilograms of farm milk.
For this month, the protein value is 885.95 euros, and the fat value is 590.63 euros per 100 kilograms of organic farm milk.
Understanding Guaranteed Price
The guaranteed price represents the amount that FrieslandCampina pledges to pay member dairy farmers for the organic farm milk they provide. It mirrors the average farm milk price to be paid by several dairy companies in northwestern Europe, encompassing supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges.
The monthly guaranteed price forms the basis for the member dairy farmer's milk money, determined by the quantity and protein, fat, and lactose content of the supplied milk. The offset between the guaranteed price and milk money considers fixed costs and supplements or charges, with 2024's fixed costs for organic and biodynamic farms set at 0.32 euros per 100 kilograms of farm milk supplied.
The average guaranteed price for organic farm milk for the initial months of 2024, up to and including March, stands at 56.33 euros per 100 kilograms.
FrieslandCampina calculates the guaranteed price based on milk components—protein and fat—in a fixed ratio of 6:4. The published price is per 100 kilograms of farm milk, considering 3.58% protein and 4.45% fat, exclusive of VAT. This amount is applicable to an annual average of 550,000 kilograms of farm milk.
For this month, the protein value is 885.95 euros, and the fat value is 590.63 euros per 100 kilograms of organic farm milk.
Understanding Guaranteed Price
The guaranteed price represents the amount that FrieslandCampina pledges to pay member dairy farmers for the organic farm milk they provide. It mirrors the average farm milk price to be paid by several dairy companies in northwestern Europe, encompassing supplementary payments, registered reservations, seasonal supplements, quantity supplements, maximum quality supplements, and cooperative supplements or charges.
The monthly guaranteed price forms the basis for the member dairy farmer's milk money, determined by the quantity and protein, fat, and lactose content of the supplied milk. The offset between the guaranteed price and milk money considers fixed costs and supplements or charges, with 2024's fixed costs for organic and biodynamic farms set at 0.32 euros per 100 kilograms of farm milk supplied.
23.09.2024
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