NETHERLANDS - European dairy co-operative Friesland Campina has lowered its guaranteed price for raw milk for May 2016 to 25.00 euro per 100 kilograms of milk, a decrease of 2.50 euros compared to April.
The company said the decrease in the guaranteed price is the result of the expectation that the milk prices of the reference companies in May will drop even further.
The downward trend in sales prices of dairy products continues, caused by sluggish worldwide demand and an increasing milk supply. In addition there was a negative correction of 0.80 euro to compensate for too high estimated milk prices of the reference companies in the first quarter of the year.
The protein price in May 2016 is 408.10 euros, the fat price is 204.05 euros and the lactose price is 40.81 euros per 100 kilograms.
The guaranteed price applies to 100 kilograms of milk with a protein content of 3.47 per cent, a fat content of 4.41 per cent and a lactose content of 4.51 per cent and is exclusive of VAT. The amounts shown apply to an average supply of 600,000 kilograms of milk annually.
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