NEW ZEALAND – FrieslandCampina has raised its guaranteed price for farm milk for June 2024 to €47.75 per 100 kilograms, reflecting a €0.50 increase from the previous month.

The rise is attributed to expectations of higher reference prices driven by increasing dairy commodity costs. The average guaranteed price for farm milk for the first half of 2024 is now €46.50 per 100 kilograms.

The FrieslandCampina guaranteed price is distributed based on the milk components: protein and fat, in a fixed ratio of 6:4.

The guaranteed price is published per 100 kilograms of farm milk with 3.58% protein and 4.45% fat, exclusive of VAT.

This rate applies to an average of 925,000 kilograms of farm milk annually. For June, the value of protein is set at €729.38 and the fat value at €486.25 per 100 kilograms of milk.

The guaranteed price is the amount FrieslandCampina guarantees to pay its member dairy farmers for the milk they supply.

This price reflects the average farm milk price paid by various 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’s milk money is calculated considering the quantity and content of protein, fat, and lactose in the milk supplied. In 2024, the fixed costs for regular farms are €0.19 per 100 kilograms of farm milk supplied.

Additionally, FrieslandCampina is raising its guaranteed price for organic farm milk for June by €0.75, setting it at €57.25 per 100 kilograms.

This increase results from corrections related to the past period. The average guaranteed price for organic farm milk for the first half of 2024 is €56.54 per 100 kilograms.

For June, the value of protein in organic milk is €874.49, and the fat value is €582.99 per 100 kilograms of organic farm milk. Fixed costs for organic and biodynamic farms in 2024 are €0.32 per 100 kilograms of farm milk supplied.

FrieslandCampina’s guaranteed price system ensures that member dairy farmers receive fair compensation reflecting market conditions, helping to stabilize income despite fluctuating market dynamics.

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