FrieslandCampina Increases Guaranteed Price for Farm Milk to 49.25 Euros for August 2024
Source: The DairyNews
FrieslandCampina will raise its guaranteed price for farm milk to 49.25 euros per 100 kilogrammes in August 2024, marking an increase of 1.25 euros compared to the previous month. This adjustment reflects the recent rise in reference prices and the expectation of continued price growth.
Up to and including August, the average guaranteed price for farm milk in 2024 stands at 47.03 euros per 100 kilogrammes of milk.
The FrieslandCampina guaranteed price for farm milk is distributed based on milk components: protein and fat, in a fixed ratio of 6:4. The guaranteed price is calculated per 100 kilogrammes of farm milk, containing 3.58% protein and 4.45% fat, exclusive of VAT. This amount applies to an average annual supply of 925,000 kilogrammes of farm milk.
Value of Milk Components in August
Protein Value: 752.29 euros per 100 kilogrammes of milk
Fat Value: 501.53 euros per 100 kilogrammes of milk
Guaranteed Price Explanation
The guaranteed price is the amount FrieslandCampina assures to pay its member dairy farmers for the farm milk they deliver. This price reflects the average farm milk price paid by several 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, member dairy farmers receive milk money. This milk money is determined by the quantity and protein, fat, and lactose content of the milk supplied. The difference between the guaranteed price and the milk money results from the offsetting of fixed costs and various supplements or charges. In 2024, the fixed costs for regular farms are 0.19 euros per 100 kilogrammes of farm milk.
The FrieslandCampina guaranteed price for farm milk is distributed based on milk components: protein and fat, in a fixed ratio of 6:4. The guaranteed price is calculated per 100 kilogrammes of farm milk, containing 3.58% protein and 4.45% fat, exclusive of VAT. This amount applies to an average annual supply of 925,000 kilogrammes of farm milk.
Value of Milk Components in August
Protein Value: 752.29 euros per 100 kilogrammes of milk
Fat Value: 501.53 euros per 100 kilogrammes of milk
Guaranteed Price Explanation
The guaranteed price is the amount FrieslandCampina assures to pay its member dairy farmers for the farm milk they deliver. This price reflects the average farm milk price paid by several 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, member dairy farmers receive milk money. This milk money is determined by the quantity and protein, fat, and lactose content of the milk supplied. The difference between the guaranteed price and the milk money results from the offsetting of fixed costs and various supplements or charges. In 2024, the fixed costs for regular farms are 0.19 euros per 100 kilogrammes of farm milk.
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