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Inside Milk

Arla is in no rush to raise milk prices

23 December 2019 - Wouter Baan

Arla kicks off 2020 with a stable milk price. While other milk processors in Europe are increasing the payment prices, the Scandinavian dairy cooperative apparently does not see any scope for this.

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Traditionally, Arla is one of the first processors in Europe to announce the milk price for the new month. For January, the protein price will be increased (+0,18 to €4,52 per kilo), but this will be offset by a lower fat price (-0,16 to €3,78 per kilo). The milk price therefore remains virtually stable at €32,36 per 100 kilos, with the standard Dutch contents and an annual supply of 1 million kilos.

Stable rate
In this way, Arla is maintaining the stable course it has been sailing for more than a year. Looking at the milk price comparator van Boerenbusiness it can also be concluded that Arla is lagging behind compared to other processors that collect milk in the Netherlands. They have significantly increased the milk price in recent months increased.

In a statement, Arla indicated that skimmed milk powder prices have been benefiting from good demand for some time, while fat prices remain fairly stable. However, Arla is currently refraining from adjusting the milk price. 

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