Inside: Dairy Market
Arla raises milk price for the month of July
Dairy processor Arla has announced that it will increase the milk price in July. As in previous months, the payout price differentiates between the UK and the mainland countries.
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Arla's milk price for the month of July will be increased by €2 per 100 kilos of milk. This is Arla's international milk price, based on 4,20% fat and 3,40% protein. The increase may differ per country, as each country applies different conditions. In June, Arla's milk price in the Netherlands amounted to €31,07 per 100 kilos delivered at 4,0% fat. At Arla you can also earn a grazing premium and an amount for quality and cells. Arla's increase is a signal that milk prices will pick up in July.
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Dairy farmers in the United Kingdom can count on a gross plus of £1,65 per 100 kilos. At the bottom line, this leaves £1,44, bringing the payout price against British standards to £29,17 per litre. British dairy farmers received cuts in June.
Thanks to fat
The higher milk price is due to the good sentiment in fat. "It is welcome news for our dairy farmers that we can pass on the rising market prices in fat in our milk price," said Arla director Jonathan Ovens. According to Ovens, price increases are a result of low supplies of butter, cheese and cream. According to Arla, the protein price also feels firmer, although at a low price level.