Inside: Milk & Food
What good news does milk price Arla bring?
Due to the various developments in the dairy market, it is becoming increasingly difficult to estimate what the milk price will do. Arla already reveals something about the course that FrieslandCampina will probably follow. This concludes a better first quarter. More for insiders of Boerenbusiness Milk.
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For the British, the increase is limited to 0,38 pence per litre, which brings the price for liquids to 27,45 pence. The price of factory milk is 28,55 pence.
Arla can still earn a grazing premium and an amount for quality and cells.
In an explanation, Arla indicates that the milk supply in the European Union is still well below the 2016 line. 'Although the supply is starting to increase in line with the seasonal trend. Milk production in Oceania and South America is declining, but on the other hand, a growth of 2 percent is achieved in the US. The markets seem stable with continued good demand, especially in Asia.'
In total, Arla has been able to increase the milk price by 3,50 euros per 100 kilograms of milk since the beginning of the year. It is not clear why Dutch dairy farmers did not see this in full on the milk statement. In any case, it is a good start to the year after the setbacks in 2015 and 2016.