Inside Milk
Milk price Arla further up in July
Arla announces that it will increase the milk price in July, and even more than in June. In particular, a lower than expected amount of milk made the increase possible. A positive start to the second half of 2018.
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In July, Arla announces that it will increase the milk price by €2 per 100 kilos. In June the milk price already increased by €1. It yields a milk price of €32,02 per 100 kilos. This with 4,41% fat and 3,47% protein and an annual supply of 600.000 kilos of milk.
32,02
euro
The higher prices are possible thanks to the milk supply, which did not meet expectations. Less milk was supplied to the processor, while demand (particularly from Asia) was good. Although the conventional market is in good shape, the organic milk market is struggling with a surplus. As a result, prices remain under pressure.
Within FrieslandCampina's milk price, Arla represents less than 10% of the milk price determination. Germany has a share of 58,5%. DMK's new milk price will only be announced on the last working day of the month.
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At Arla, dairy farmers can earn a grazing premium of €0,50 per 100 kilos. €1 extra is paid for GMO-free milk and a bonus of €1 can also be earned. By 2020, Arla hopes that the milk pool will consist of 20% organic milk.