May doesn't bode well for the dairy farmers who supply Arla. For the second time in a row, the dairy is announcing a reduction in the milk price. With which the fear that the milk price has seen the highest point is beginning to come true.
British dairy farmers will escape, but for dairy farmers in other countries the milk price will be reduced by 1 euro. It is the second time in a row that the dairy company has announced a lower milk price.
Just like in April
The processor also deducted 1 euro from the milk price for the month of April. She is doing that again now. This results in a basic milk price of 31,65 euros per 100 kilos of milk. This price applies to milk with 4,20 percent fat and 3,40 percent protein. At Arla you can still earn a grazing premium and an amount for quality and cells.
Profit stripped away
The latest decline means that the profit for the first quarter is again partly erased. For example, the first quarter yielded a profit of 3,50 euros per 100 kilos of milk, but the second quarter has so far recorded a loss of 2 euros per 100 kilos of milk.
In England it was decided to use the currency mechanism. This is intended to correct the decline in milk prices.