Inside Milk
Milk price Arla also deviates from Rabobank forecast
The advance milk price of dairy cooperative Arla remains the same for July and has been stable for more than six months now. However, this stable movement does not match Rabobank's expectations.
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The Scandinavian cooperative uses a fat price of €3,97 per kilo for the month of July, while the protein is valued at €4,36 per kilo. Arla has approximately 100 dairy farmers in the Netherlands. For an annual delivery of 800.000 kilos, they receive an advance milk price of €34,51 per 100 kilos.
With the exception of minimal currency corrections, the milk price has been flat since January. Arthur Fearnall, the director of Arla, reports that the cooperative strength is decisive in keeping the milk price stable.
Milk fat under pressure
On the dairy market, Arla is mainly experiencing pressure from declining prices for milk fat and cheese. The prices for protein are up, although according to the dairy cooperative this is less rapid than a few months ago. Bottom line, Arla sees no reason to adjust milk prices accordingly.
Rabobank assumed slightly rising milk prices in Europe for the third quarter of 2019, but the dairy cooperatives have not yet responded to this. Dairy cooperative FrieslandCampina has even reduced the milk price for the month of July.
Click here for the milk price comparison.