Inside Milk
Arla finally raises the milk price
After an unprecedentedly long stable period, Arla's milk price is picking up again. As a result, the dairy cooperative surpasses DOC Kaas and A-ware in a milk price comparator.
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Apart from some currency fluctuations, the milk price at the Scandinavian dairy cooperative remained stable over the past 14 months. Arla announces an increase for March. The fat price increases by €0,10 to €3,88 per kilo. The price of protein increases by €0,15 to €4,67 per kilo. The basic milk price for the Netherlands increases by €0,96 to €33,15 per 100 kilos. Including bonuses and premiums, the milk price can rise to €35,77 per 100 kilos.
Coronavirus
The increase comes as somewhat of a surprise. This is because sentiment has become more negative in recent weeks due to the outbreaks of the coronavirus in China. FrieslandCampina therefore lowered the guaranteed price for March at the beginning of this week. Arla recognizes that there is uncertainty, but still increases the milk price.
The increase can be seen as a result of the recovery on the skimmed milk powder market in recent months. Other (Dutch) processors subsequently increased payment prices, but Arla failed to do so until next month.
Shift in milk price comparator
In milk price comparator van Boerenbusiness Arla has been in last place since December. Thanks to the increase in March, the Scandinavian dairy cooperative is again trading above DOC Cheese and A-ware, although those companies have not yet announced the milk price for March.