Amersfoort, The Netherlands – FrieslandCampina has announced an increase in its guaranteed price for organic farm milk for September 2024, raising it to 59.00 euros per 100 kilogrammes. This represents a 1.00 euro increase compared to the previous month. The hike is attributed to the anticipated rise in reference prices driven by growing market demand, along with a positive adjustment for the previous period.
As of September, the average guaranteed price for organic farm milk in 2024 stands at 57.08 euros per 100 kilogrammes. The guaranteed price is determined based on milk components—specifically protein and fat—in a fixed ratio of 6:4. The price is calculated per 100 kilogrammes of milk with 3.58% protein and 4.45% fat content, exclusive of VAT, and applies to an annual average supply of 550,000 kilogrammes of farm milk.
For September, the value of the milk components is set at 901.22 euros per 100 kilogrammes for protein and 600.81 euros per 100 kilogrammes for fat. The guaranteed price represents the amount FrieslandCampina commits to paying 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 factors like supplementary payments, registered reservations, seasonal and quantity supplements, and maximum quality and cooperative supplements or charges.
The milk money received by member farmers is calculated based on the monthly guaranteed price, factoring in the milk’s quantity and content of protein, fat, and lactose. The difference between the guaranteed price and the milk money arises from the offsetting of fixed costs and applicable supplements or charges. In 2024, the fixed costs for organic and biodynamic farms are set at 0.32 euros per 100 kilogrammes of supplied farm milk.
This adjustment by FrieslandCampina underscores the company’s commitment to supporting its member farmers amidst changing market dynamics and increasing demand for organic milk products.