Dutch dairy FrieslandCampina has increased its guaranteed price for raw milk for December 2016 to €37.50/100kg of milk.
This is an increase of €4.50 for December milk compared to November.
In Irish constituents, the December milk price is the equivalent of 36.24c/L.
The increase of €4.50 is mainly due to a correction of €3.50 on too low estimated prices of the reference companies in recent months.
The positive development of milk prices is caused by a declining global milk production at a stable demand, according to FrieslandCampina.
The protein price in December 2016 is €612.14, the fat price is €306.07 and the lactose price is €61.21 perkg.
Over the whole of 2016 the average guaranteed milk price for FrieslandCampina suppliers will be €28.38.This is down on 2015, when the guaranteed price was €30.68 and the milk price was €34.64 (this included the guaranteed price, performance payment, meadow milk premium, special supplements, reservation of member bonds).
The guaranteed price applies to 100kg of milk with a protein content of 3.47%, a fat content of 4.41% and a lactose content of 4.51% and is exclusive of VAT.
The amounts shown apply to an average supply of 600,000kg of milk annually.
Over the past four months, FrieslandCampina has consecutively increased its milk prices for its suppliers.
This latest increase in price is now higher than any guaranteed milk price paid by FrieslandCampina in 2015. It is above the guaranteed milk prices paid in October, November and December of 2014.