In consultation with an international sounding board we decided
to adjust the definition of standard milk. From the milk price comparison of
January 2007 the protein percentage has raised from 3.35 to 3.40 % and the
annual delivery from 350,000 to 500,000 kg.
A protein content of 3.40% is chosen for to fit in with other milk price
comparisons, in which 3,40 % is also applied in the standard.
The annual delivery is adjusted because of the growth of dairy farms in the last
years.
The results of these adjustments for the calculated milk prices per dairy
company can be viewed in the table below.
|
Adjustment advance milk price |
Adjustment |
||||
|---|---|---|---|---|---|
| Total | As a result of | ||||
| protein | quantity bonuses |
other | |||
| Milcobel | 0.62 | 0.24 | 0.35 | 0.03 | 0.003 |
| Humana | 0.31 | 0.25 | 0.06 |
|
0 |
| Nordmilch | 0.35 | 0.25 | 0.06 | 0.04 | 0 |
| Arla Foods DK | 0.35 | 0.22 | 0.13 | 0.02 | |
| Hameenlinnan O. | 0.32 | 0.32 | 0 | ||
| Bongrain | 0.25 | 0.25 | none | ||
| Danone | 0.25 | 0.25 | none | ||
| Lactalis | 0.28 | 0.28 | none | ||
| Sodiaal | 0.25 | 0.25 | none | ||
| Arla UK | 0.36 | 0.36 | none | ||
| First Milk | 0.65 | 0.18 | 0.47 | none | |
| Glanbia | 0.21 | 0.21 | 0 | ||
| Kerry Agribusiness | 0.23 | 0.23 | none | ||
| Campina | 0.53 | 0.28 | 0.22 | 0.03 | 0.02 |
| Friesland Foods | 0.41 | 0.28 | 0.13 | 0.02 | |
| Arla Foods Se | 0.35 | 0.22 | 0.13 | 0.02 | |
As can be seen from the table due to the adjustments the
calculated advanced milk prices rise from 0.21 (Glanbia) to 0.65 (First Milk)
euro per 100 kg milk (see column "total").
This rise is particularly a result of the higher standard protein content (see
column "protein").
Exception is Arla UK, because this company doesn’t pay on base of the protein
content.
Due to the higher quantity bonus a dairy farmer receives from Arla UK by a annual delivery of 500,000 kg, 0.36 euro per kg more than for a delivery of 350,000 kg (see column quantity bonuses’). First Milk offers even a higher quantity bonus. This higher standard annual delivery is still significant lower than the average volume in the United Kingdom (appr. 800,000 kg per farm). In reality the dairy farmers in the UK receive, on average, a still greater quantity bonus.
The opposite is worth for Milcobel. Milcobel pays a relatively higher volume bonus to the greater dairy farmers, but the average farm size in Belgium is lower than 300,000 kg and thus significant lower than the standard annual delivery. At a greater annual delivery the fixed sum retained can be spread out over more kilos milk. As a result for a few companies the cost deductions per kilo milk gets lower and thus the calculated milk price higher. The fixed deduction of Friesland Foods is per month relatively higher, resulting in the rise of the calculated milk price of 0.13 euro per kg by an annual delivery of 500,000 instead of 350,000 kg (see column "other" ).
In the payment system Arla offers bonuses for quality based on a percentage of the so called basic price. Due to the higher standard protein content this basic price is higher (+ 0.22 euro per kg). As a result the bonuses for quality and market also raise (other bonuses + 0.13 euro per kg).
The calculated supplementary payments of Humana, Hämeenlinnan O. and Glanbia will not change, because these are fixed prices per kg. De supplementary payments of Arla, Campina, Friesland Foods and Milcobel have been raised slightly due to the adjustments of the standard milk.