Inside: Milk & Food
New Arla milk price breaks the trend in the market
What does Arla's milk price do? The Danish dairy giant released a new milk price for the month of April on Thursday, breaking the upward trend that has started since the summer.
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Trend break
In March, Arla announced that it would increase the price by 50 cents per 100 kg of milk. That was the seventh increase in a row. That trend in the milk price has now been broken. Because now follows the reduction of one euro, the standard contents of 4,20 percent fat and 3,40 percent protein. Arla says he is not happy with the decrease, but due to the developments in the market, the processor had no other choice. Prices on the European market in particular are under pressure.
Volume pressure
Dairy Co provides even more insight into the background and mainly outlines a difficult market for skimmed milk powder. There is still about 350.000 tons in storage. Only 40 tons could be removed by tender. Due to the rapid depreciation of milk powder, intervention is once again in sight. Should this instrument be used again, there will be room for 109.000 tons of skimmed milk powder.