Inside Milk
Milk price Arla plus for fourth time in a row
Arla raises the milk price for the fourth month in a row. An increase that is welcome; especially now that the drought is causing the cost price for dairy farmers to rise. At the same time, there is a warning for September.
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Arla increases the milk price for August by €1, making it the fourth increase in a row. Since April, these increases have allowed €3,84 to be added to the milk price. With an annual supply of 600.000 kilos of milk (with 4,41% fat and 3,47% protein), it yields a milk price of €32,86 per 100 kilos.
32,86
euro
Fat yields significantly better
Despite the pluses, the quotation is at the bottom compared to other Dutch milk prices. At the same time, the fat yields significantly better with this processor than with other Dutch processors, which means that high levels here pay extra. Protein is slightly less profitable.
The increase in the milk price is prompted by the dry conditions in various places in Europe. It poses a danger to the supply of milk. However, it is a plus that is welcome by dairy farmers (due to rising production costs).
Warning
However, Arla cannot only bring positive news, because between the lines it warns that the milk price for later in the year is not yet a done deal. "The uncertainty in the commodity market is increasing. The supply of organic milk, especially in Germany and France, is also putting pressure on prices in the organic segment."
The common thread is that the supply is in danger, but has not yet shown a decline. Added to this is the volatility in prices. As a result of the trade war and relatively large stocks, the dairy trade has a nervous undertone. It means it doesn't take much to move prices.