QUALITY
Since January 2002 the standard quality in the international milk price
comparison has been set on a total bacterial count of 24.999 and somatic cel
counts of 249.999. Till now standard milk in the milk price calculations had
a tbc of 50.000 and scc of 300.000. Assuming that most of the milk produced
in European countries that are part of this comparison meet quality counts
of 24.999/ 249.999, the higher standard quality may come closer to the average
European farmer. For a number of companies the higher standard quality has
a positive effect on the milkprice (see "graphics" graph 4).
AVERAGE MILK PRICE
Average milkprices January 2002 increased 1% compared to January 2001. The
12-month rolling average including supplementary payment increased 4.9%.
Most companies cut the milkprices in January compared to December. Especially
milkprices of the Dutch, German and Belgic companies decreased compared to
last month. The average change for all companies was -4.4% (!) compared to
December.
PARMALAT
Since this month the actual contract between Parmalat and milk producers has
been integrated in the milkprice comparison. This contract started in May
2001 en ends 30 April 2002. Milkprices before the year ending April 2002 are
based on a National Contract, because for that period there was no official
contract between Parmalat and the milk producers. Probably the milk producers
did make individual agreements with Parmalat. The different contracts make
the milkprices of Parmalat hard to compare over the last years.
LACTALIS, BONGRAIN, DANONE
For the first quarter of 2002 there has been no "national recommendation",
an agreement between French milk producers and milk processors. According
the French indexation system milkprices were cut by 2.5-3%. To compensate
the decreased milkprice the French milk buyers decided to give an extra bonus
on the milkprice of 0.46 euro/100 kg. This bonus is integrated in the January
milkprice.
UNITED STATES
In comparison to last year the class III milkprice of January is up + 26%.
Part of this increase was caused by fluctuation of the dollar (+ 6.2%). The
expection for milk price developments for next months however, are not too
cheerful.
FIRST MILK, EXPRESS DAIRIES
Several english dairy companies announced price cuts for January 2002. Reasons
mentioned are decreased commodity prices and that there is simply too much
milk. For the deliveries of January First Milk reduced rewards for fat and
protein contents and Express Dairies decreased the flat rate. Both companies
still pay a (lot) better milkprice than last year.
CAMPINA
Campina paid part of the supplementary payment for 2001 in January. Dairy
farmers received in advance 1,82 euro per 100 kg. The definite supplementary
payment will follow in May.
NEW ZEALAND
Fonterra is successor of the New Zealand Dairy Group. The milkprice paid by
Fonterra January 2002 is an advance payment (published in Fonterra’s
newsletter ‘Milklink’). New Zealands dairy season starts in June
and continues until May. The advance milkprice starts modest but increases
during the season. The advance payment for the season 2002-2002 started at
3.45 NZ$, 24% higher than last year’s season. Since November the advance
rate increased to 3.65 NZ$ /100 kg milksolids. Fonterra expects the milkprice
to reach 5.2 NZ$ at the end of this season. Adjusted to the milkprice comparison
this is over 18 euro/ 100 kg.
CURRENCIES
The value of the Swedish Krona is still beneath last year’s value (-3.2%
for January). This has a negative effect on the milkprices of Arla in this
comparison.
Other currency changes were the US$ (+ 6.2%), NZ$ (+2.4%), danish krona (+0.4%)
and British pound (+ 2.9%).
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