Dutch dairy giant FrieslandCampina has held its guaranteed price for raw milk for July 2016 at €25.00 per 100kg of milk.
The guaranteed price for July, therefore remains the same as in May and June. In Irish constituents, this is the equivalent of 24.16c/L.
The demand for dairy products remains stable, according to FrieslandCampina, and in the last few weeks, the milk production in the EU has declined after the seasonal peak in May.
As a result of this, a number of quotations show a slight upward trend.
The protein price in July 2016 is €408.10, the fat price is €204.05 and the lactose price is €40.81 per 100kg.
The guaranteed price applies to 100kg of milk with a protein content of 3.47%, a fat content of 4.41% and a lactose content of 4.51% and is exclusive of VAT. The amounts shown apply to an average supply of 600,000kg of milk annually.
Earlier this year, farmers supplying FrieslandCampina were paid a total of €14.1m for limiting their milk supply between January 1 and February 11.
FrieslandCampina paid its member dairy farmers a ‘bonus’ of €2.00/kg if they limited supply within this time period.
The temporary measure resulted in a reduction of the milk supply of a total of about 35m kg of milk over the six-week period.
There was insufficient processing capacity available at the dairy due to a stronger growth in milk supply than FrieslandCampina expected, thus, the measure was needed.
Some 60% of member dairy farmers participated in the arrangement.
Because of the temporary measure, combined with a number of other measures, FrieslandCampina was able to buy all the milk from the member dairy farmers during the past six weeks.