FrieslandCampina Expects Guaranteed Milk Price of EUR36.50

27 Mar 2013 --- FrieslandCampina is expecting to pay its member farmers a guaranteed price of approximately 36.50 euros per 100 kilogrammes of raw milk for the whole of 2013. The substantial increase in the guaranteed price is due to the decline in the milk supply in New Zealand as a result of drought combined with the lagging milk supply in Europe.

For the year 2012, FrieslandCampina paid its member farmers a guaranteed price of 33.87 euros per 100 kilogrammes of milk.

FrieslandCampina presented its guaranteed price forecast for 2013 at its first district members’ meeting, held on the evening of Monday 25 March. CEO Cees ’t Hart said: “Price quotations for many dairy products have risen sharply in recent weeks. Higher prices were bid for milk powders in particular at the Fonterra internet auction. Butter prices are also rising sharply due to the fact that stock levels are low across the board. The drought in New Zealand and the low levels of milk supply in Europe mean that supply is more limited than previously anticipated. This is leading to rapid price hikes.”