FrieslandCampina guaranteed price farm milk August 2024 increases to 49.25 euros

FrieslandCampina will increase its guaranteed price for farm milk to 49.25 euros per 100 kilogrammes in August, an increase of 1.25 euros compared to the previous month. This increase is based on recently risen reference prices and the expectation that they will continue to rise.

The average guaranteed price for farm milk for 2024 up to and including August is 47.03 euros per 100 kilogrammes of milk.

The FrieslandCampina guaranteed price for farm milk is paid out in the milk components: protein and fat, in a fixed ratio of 6:4. The guaranteed price is published per 100 kilogrammes of farm milk, at 3.58% protein and 4.45% fat, exclusive of VAT. The amount applies for an average of 925,000 kilogrammes of farm milk on annual basis.

This month the protein value is 752.29 euros and the fat value is 501.53 euros per 100 kilogrammes of milk.

The guaranteed price is the price that the company guarantees to pay member dairy farmers for the farm milk they supply. The guaranteed price reflects the average farm milk price to be paid by a number of 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 receives milk money. The milk money is based on the quantity and protein, fat and lactose content of the milk supplied by the member farmer. The difference between guaranteed price and milk money arises from the offsetting of fixed costs and supplements or charges. In 2024, the fixed costs of regular farms are 0.19 euro per 100 kilogrammes of farm milk supplied.

• 2019 is based on Milk Fee Regulations 2017-2019
  (3.47% protein, 4.41% fat and 4.51% lactose)
• 2020, 2021 and 2022 are based on Milk Fee Regulations 2020-2022
  (3.57% protein, 4.42% fat and 4.53% lactose)
• 2023 and 2024 is based on Milk Fee Regulations 2023-2025
  (3.58% protein and 4.45% fat)