Milk price

• Figures

• Terms

The milk price FrieslandCampina pays its member dairy farmers for the milk they supply consists of the guaranteed price and the annual performance payment. The guaranteed price is fixed and paid each month. It is not linked to FrieslandCampina’s result but is instead based on the prices for raw milk in Germany, Denmark, the Netherlands and Belgium. The performance payment does however depend on the company’s financial results and the approved reservation policy.

Read more here about the calculation of the guaranteed price, how the guaranteed price is translated in the monthly cash payment and the calculation of the annual performance payment.

Calculation of the guaranteed price
The guaranteed price that we publicise on the first Monday of each month is the guaranteed price we pay our member dairy farmers for the milk they supply that month.

This guaranteed price is not linked to FrieslandCampina’s result. We base the guaranteed price on the average milk price for Germany, the milk price of Arla Foods in Denmark, the milk prices of Bel Leerdammer, Cono Kaasmakers and DOC Kaas in the Netherlands and the milk price of Milcobel in Belgium.These are the average annual prices, including payments in arrears and registered reserves.  These prices for raw milk are representative for the country concerned. In order to calculate the FrieslandCampina guaranteed price, we weight these milk prices for the volume of milk processed in the entire country in question. In total, this involves about 45 billion kilograms of milk. We base these calculations on the milk prices in recent months and the expectations for the coming months on the basis of price movements in the dairy market. Each month, the guaranteed price consists of the expected price in the relevant month and any settlement of differences in expectations from preceding months.

FrieslandCampina guaranteed price

Prices in euros per 100 kilograms of milk with 4.41% fat and 3.47% protein, excluding VAT. This price does not include additional charges or payments.


Movements in guaranteed price per kilogram of fat and protein (Dutch members)

A negative basic price of EUR 3.20 per 100 kilograms of milk applies. This deduction is paid out in full via the protein price, on the basis of the average protein content of the milk supplied by the FrieslandCampina member farmers in the month in question. As a result, it is possible that, if the guaranteed price remains unchanged, there may still be a difference in the protein price and in the milk price of an individual dairy farmer. The protein price published here includes this payment, and is also shown in the milk statements of individual dairy farmers. The negative basic price must therefore be deducted in order to attribute the fat and protein prices shown here to the guaranteed price per 100 kilos of milk.

Translation of guaranteed price into monthly milk price for an individual dairy farmer
Based on the guaranteed price for that particular month, an individual FrieslandCampina member dairy farmer will often receive a monthly cash payment that is higher or lower than the guaranteed price. The difference between the monthly cash payment and the guaranteed price is due to the sum of levies and surcharges applied within FrieslandCampina. Some levies and surcharges, such as the fixed costs and the quantum surcharge, apply throughout the year. There are also seasonal adjustments, ch as the summer levies and  the autumn seasonal payment.
In terms of seasonal charges and payments, January, February, July and December are ‘neutral’ months, in which there is no seasonal charge or payment. A seasonal charge of 2.30 per 100 kilos of milk is made from March to June. A seasonal payment of 2.45 euros applies from August to November.


December 2011 (prices in euros per 100 kilograms of milk with 4.41% fat and 3.47% protein, excluding VAT)

The ‘deduction for provisions’ is to finance the quantum supplement (0.72 euro per 100 kilos of milk) and t a number of other schemes (0.02 euros)

Fluctuations in the cash payments to a FrieslandCampina- dairy farmer in the Netherlands with an annual milk supply of 500,000 kilos

Performance payment
Unlike the guaranteed price, the performance payment does depend on the financial results of FrieslandCampina and the approved reservation policy. In principle, we pay out 30% of the company’s net profit in cash to the members as the performance payment, based on the guaranteed price and after deduction of the payments on member certificates and bonds. The performance payment is paid out annually, in proportion to the value of the milk delivered, following approval of the financial statements.

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