What is a Milk Price Guarantee Certificate (MPGC)?

The Milk Price Guarantee Certificate offers you the possibility of receiving a fixed milk price for a certain period. An Milkpriceguaranteecertificate will be valid for 50,000 kg of milk. You can decide yourself what quantity of your milk quota you wish to cover with the MPGC. 
 

What is the reference price?

This is the standard representive price thats published and recognizable in the environment. It depends on which country or region the release is done.
 

To whom do I deliver my milk?

 
You continue to deliver your milk to your current customer. The certificate is separate from your milk flow. 
 

How does the cash flow work?

Settlement takes place monthly based on the reference price. If the reference price is lower than the price agreement of the certificate, you will receive the difference immediately. If the reference price is higher than the price agreement of the certificate, you will be required to pay the difference. 
 

What are the costs?

The fixed entry amount, irrespective of the number of certificates will be EUR 250.00. Administrative costs of EUR 0.15 per 100 kg of milk will also be charged. 
 
Example of five certificates running for more than one year: 
  • Entry amount: EUR 250.00 
  • Administrative costs: EUR 375.00 (5 certificates x 50,000 kg x 1 yr)/100 kg milk x EUR 0.15 = EUR 375.00).
  • Costs per certificate: EUR 25.00 

What are the risks?

The greatest risk is the failure by one of the parties to fulfil its payment obligations. Customers are required to provide sufficient guarantees in order to cover this risk. 
 
DTO takes no risks regarding the prices by passing these on to a professional third party. 
 

Are an unlimited number of certificates placed?

No, the placing of certificates depends on the number of certificates and therefore the volume of milk that the customers wish to set. DTO will mail the price level of the certificate to the dairy farmers who have stated that they wish to be kept informed. The dairy farmer can then register subject to the principles “first come, first served” and “full = full”. 
 

Can I be kept up-to-date without obligation?

Of course. All communications on the introduction of the certificates proceed via e-mail. When placing a certificate, all dairy farmers who have registered on the site will be kept up-to-date completely free of obligation. The initiative for registering a certificate or not (and with what volume) rests with the dairy farmer. 
Register now! (hyperlink naar inschrijfformulier)
 
 
DTO in principle has no opinion on the dairy market nor is any advice given on whether or not to purchase certificates. 
 
 
For further information 
 

Contact

Ecopark 75b, 8305 BJ Emmeloord 

T.   0031 (0)527-630500

info@dairytradingonline.com

About DTO

DTO milkpriceguaranteecertificate is a part of Farmel BV