Inside Milk
Arla expects hesitant dairy market this autumn
While many milk prices are cautiously improving after the decline as a result of corona, this is not yet the case at Arla. The Scandinavian milk processor will also lower the milk price in September ...
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As one of the first major dairy producers in Europe, Arla always announces the milk price early. This remains virtually unchanged for September, which means the basic payout price in the Netherlands it amounts to €30,85 per 100 kilos. This is calculated for an annual supply of 1 million kilos with 3,57% protein and 4,42% fat.
The underlying fat and protein prices are €3,56 and €4,28 per kilo respectively. Compared to August, the fat price has corrected slightly due to currency fluctuations between the euro and the British pound. Including bonuses and premiums, the milk price can rise to €34,52.
No different market view
Arla does not foresee any room for a recovery in the milk price. According to Arthur Fernall, chairman of the board of directors of the dairy cooperative, the dairy market is relatively quiet this summer period. The 'r' is almost in the month again, which means that another season is coming.
However, Fernall does not expect a changing market picture on the dairy market. He describes the current situation as 'hesitant'. This is due to the still uncertain impact of the corona crisis, which is causing demand on the dairy market.