Inside Milk
Arla: 'European dairy market is unusually stable'
Due to the relatively stable European dairy market, the Scandinavian dairy company Arla is leaving the milk price unchanged for May.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
The above results in one for Arla for the month of May milk price of €34,51 per 100 kilos, based on an annual supply of 800.000 kilos of milk and the contents that are standard in the Netherlands (4,41% fat and 3,47% protein).
Flat dairy market
Explaining the change, Johnnie Russel, director at Arla, speaks of an unusually stable dairy market in Europe; especially for the time of year. In recent months, cheese and butter prices have been relatively stable, which deviates from the seasonal pattern of previous years.
Milk fat prices have risen in New Zealand and the United States. Russel expects that this will benefit the export position of exporters in Europe.
Milk supply
Across the countries, Arla speaks of an equal milk supply compared to last year. Only in the United Kingdom, where Arla has approximately 2.500 suppliers, is the milk supply significantly higher. The UK milk production In the first two months of this year, it was even at the highest level since the turn of the century.