Agrifoto

News Dairy

FrieslandCampina launches Integral Milk Price

October 21, 2024 - Klaas van der Horst

FrieslandCampina will publish a new, higher milk price from November. This is a kind of Guarantee Price Plus, as it is above the guarantee price and also includes the Foqus planet surcharge for sustainability performance and, starting from the new year, a quantity surcharge. Deductions and costs are deducted from the Integral Milk Price.

According to FrieslandCampina, the integral milk price provides more insight into the compensation that a member dairy farmer of FrieslandCampina can receive per 100 kilograms of milk. Furthermore, the new price provides customers with a better understanding of the milk price structure, strengthening FrieslandCampina's competitive position.

The dairy cooperative also aims to counter other dairy companies that are increasingly releasing milk prices with additional rewards. Cono recently introduced a new pricing formula. A-ware has been using an Actual Price (WP) for a longer period.

In addition to the Integral Milk Price, members can receive a portion of the profit in the form of a cash bonus. The amount of this bonus depends on the financial results of the company and is proportional to the value of the milk delivered by a member in the corresponding calendar year. Separate integral milk prices will be announced for On the Way to PlanetProof and organic.

Klaas van der Horst

Klaas van der Horst is a senior market specialist in dairy at DCA Market Intelligence. He also closely monitors developments in politics and agricultural policy.
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