Inside Milk
Arla keeps milk price the same: 'GDT gives a distorted picture'
The last edition of the Global Dairy Trade showed a sharp price increase for whole milk powder. According to dairy cooperative Arla, this does not correspond to the overall market picture. The milk price for August therefore remains the same.
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Arla maintains the milk price for the coming month in the countries in which they are active. For the Netherlands, a slight upward correction is taking place due to currency fluctuations: fat and protein prices both increased by 1 cent to €3,57 and €4,28 per kilo respectively.
The basic milk price is therefore €30,89 per 100 kilos, calculated at 3,57% protein and 4,42% fat. The payment can amount to a maximum of €34,56, when premiums for vlog, grazing and company-specific premiums (such as climate check) apply to dairy farmers.
Good luck or setback?
In a sense, the stable milk price is a windfall, because in the previous 3 months the milk price fell. Still, some members might have expected an increase. Especially the British members of the cooperative, who see that milk prices in their country (and also in Ireland) are correcting upwards.
According to Arthur Fernall, chairman of the board of directors of the dairy cooperative, the stable milk price is in line with their market image. Fernall says that the significant increase in the whole milk powder quotation on the Global Dairy Trade early this month in any case does not match the overall market image. For the coming period, Arla predicts a stable development of dairy prices and thus indirectly also the milk price.
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