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FrieslandCampina guaranteed price farm milk December: 46.31 euros

Source: The DairyNews
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The FrieslandCampina guaranteed price for farm milk in December compared to November will increase by 4.06 euros to 46.31 euros per 100 Kilogrammes. This increase includes a positive correction due to an underestimation of the guaranteed price in the previous period. Reference companies are expected to further increase their farm milk prices due to low milk supply and increased demand for cheese in the European Union.
The average guaranteed price for farm milk for 2023 up to and including December is 46.26 euros per 100 kilogrammes of milk.

The FrieslandCampina guaranteed price for 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 925,000 kilogrammes on annual basis.

Value milk components December

This month the protein value is 707.38 euros and the fat value is 471.59 euros per 100 kilogrammes of milk.

Guaranteed price

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 regular farms are 0.20 euro per 100 kilogrammes of farm milk supplied.

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