FrieslandCampina cites ‘market stabilisation’ as it ups milk price

FrieslandCampina has increased its milk price for February citing a stabilisation in global milk supplies.

The FrieslandCampina guaranteed price for raw milk for February 2015 is €31.50/100kg of milk. The price is €1.25 higher than in January 2015 of €30.25.

The Dutch dairy processor says milk prices of most reference companies are expected to stabilize or rise slightly in February as a result of the upward price trend of foil cheeses, milk powders and butter.friesland campina

It also cites the weak euro as helping to increase exports of European dairy products.

According to FrieslandCampina globally the milk supply is stabilizing because of a decreasing supply of raw milk in Western Europe due to impending quota violations and because of increasing drought in Australia and New Zealand.

This, it says, has resulted in a balance in the worldwide demand and supply of milk.

UK Processor cuts March price

Meanwhile, in the UK the Müller UK & Ireland Group has confirmed that its standard milk price for March, will be 24.15p/L, a reduction of 1.75p/L.

The company previously took a decision to hold its milk price for February but has since said it faced a widening gap between its price and those offered by other processors, including farmer owned co-operatives, which could potentially affect Müller Wiseman’s ability to compete.

According to Müller, although the market for farm-gate milk remains affected by high levels of milk supply from farms and weak demand for dairy products, it is reaffirming its intention to continue paying a leading ‘clean’ price on all litres supplied by farmers.

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