Arla leaves milk price unchanged for February

The February milk price that the Dutch members of Arla are paid out, amounts to €31,20 per 100 kilos. This is calculated at 4,42% fat and 3,57% protein based on an annual supply of 1 million kilos. Including bonuses for vlog, grazing and climate, the payout price can amount to €34,87 per 100 kilos. In the milk price comparator Boerenbusiness Arla is therefore in the lower regions. 

Last month, the Scandinavian dairy cooperative surprised by significantly lowering the milk price for January. In the meantime, the dairy market has gotten off to an excellent start in the new year, with many products such as butter, skimmed milk powder and cheese increasing in value. The dairy market has mid-January the negative tenor surrounding the coronavirus is behind us for now.

Uncertainty persists 
However, Arla remains cautious in explaining the milk price. Arthur Fearnall, one of the British directors of the cooperative, talks about starting points in the form of stable sales. He also notes a lower growth in milk supply than expected. At the same time, he points out the uncertainty caused by the corona crisis. The complexity of regulations regarding Brexit is also a concern. That point is justified, as the United Kingdom is the most important country contributing to Arla's turnover. In 2019 that was €2,7 billion.